A firm needs to either buy or lease $200,000 worth of equipment. The equipment has a life of 5 years after which time it will be worthless. The equipment as a CCA rate of 30% and can be leased at a cost of $38,000 per year (payments due at the beginning of each year). The corporate tax rate is 33% and the cost of debt is 12%. What is the present value of the lease payments tax shield? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)

Answers

Answer 1

the concept and steps to calculate the present value of the lease payments tax shield. Here is the detailed solution to the given problem:Given information:Firm needs to buy or lease $200,000 worth of equipment.The equipment has a life of 5 years after which time it will be worthless.

The equipment has a CCA rate of 30%.The cost of leasing is $38,000 per year (payments due at the beginning of each year).Corporate tax rate is 33%.The cost of debt is 12%.We need to calculate the present value of the lease payments tax shield.Steps to calculate the present value of the lease payments tax shield:

Firstly, we will calculate the after-tax cost of the lease, which will be considered while calculating the present value of lease payments tax shield. After-tax cost of lease can be calculated as follows:Lease cost x (1 – Tax rate)= $38,000 x (1 ratePV= (1 - (1 + 0.12)-5)/0.12 × $25,460 × 0.33= 2.558 × $8,391.80= $21,439.22Therefore, the present value of the lease payments tax shield is $21,439.22.

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Related Questions

define the term harmful activities​

Answers

Answer:

Harmful activities are what people all around the world participate in daily!
But these activities put their lives in jeopardy.

Why do people do it?
It gives an adrenaline rush to adrenaline junkies. “It’s fun” most would say.

Harmful activities are dangerous in a way that would give a bad effect towards someone and their overall health.

-HOPE THAT HELPED!! <3

Which of the following can be used to create a long position in a European put option on a stock?
A. Sell call on the stock and buy stock
B. Sell call option on the stock and sell stock
C. Buy call option on the stock and buy stock
D. Buy call on the stock and short stock

Answers

To create a long position in a European put option on a stock, an investor needs to buy the stock and purchase a put option on the same stock. This strategy allows them to have the right to sell the stock at a predetermined price if its value declines.

In order to create a long position in a European put option on a stock, an investor needs to have the right to sell the underlying stock at a predetermined price (the strike price) within a specified period (until the option's expiration). This can be achieved by purchasing the stock and buying a put option on the stock.

Buying the stock ensures that the investor has ownership of the underlying asset. By purchasing a put option, the investor obtains the right to sell the stock at the strike price, regardless of its actual market price. This provides a form of insurance against potential price declines, as the put option can be exercised if the stock's value decreases below the strike price, allowing the investor to sell the stock at a higher predetermined price.

In summary, to establish a long position in a European put option on a stock, an investor would need to buy the stock and purchase a put option on the same stock.

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24. When documenting animal data, what is typically not included in the record?


pedigree
breeding plan
weight
estimated lifespan

Answers

the answer is most likely breeding plan. i may be wrong though. hope this helps

If supply increases and demand stays the same, there will be a

A) higher equilibrium price and quantity

B)lower equilibrium price and higher quantity

C) lower equilibrium price and quantity

D) higher equilibrium price and lower quantity

Answers

Answer:

B) lower price increase quantit

Explanation:

A defining characteristic of allopatric speciation is:.

Answers

A defining characteristic of allopatric speciation is the geographic isolation of populations of a species.

In allopatric speciation, a population becomes separated by a physical barrier, such as a mountain range, body of water, or other geographical feature. The isolation prevents gene flow between the separated populations, leading to genetic divergence over time.

The populations experience different selective pressures and accumulate unique genetic variations through mutation, genetic drift, and natural selection. Over generations, the genetic differences become substantial enough that reproductive isolation occurs, meaning the separated populations can no longer interbreed to produce viable offspring. Allopatric speciation is one of the primary mechanisms by which new species arise and is often associated with the formation of distinct species in different geographical regions.

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Brief Exercise 6-10 Record inventory purchases and sales using a perpetual system (LO5)

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2, 2015, for $25,000 and then sells this inventory on account on March 17, 2015, for $45,000.

Record transactions for the purchase and sale of inventory.

1-Record the purchase of inventory on account.

2-Record the sale of inventory on account.

3- Record the cost of inventory sold.

Answers

Inventory purchase: Debit Inventory $25,000, Credit Accounts Payable $25,000. Inventory sale: Debit Accounts Receivable $45,000, Credit Sales Revenue $45,000. Cost of goods sold: Debit Cost of Goods Sold $25,000, Credit Inventory $25,000.

In a perpetual inventory system, transactions are recorded in real-time as they occur.

The purchase of inventory on account on February 2, 2015, for $25,000 is recorded by debiting the Inventory account to increase the inventory value and crediting the Accounts Payable account to record the liability for the purchase.

The sale of inventory on account on March 17, 2015, for $45,000 is recorded by debiting the Accounts Receivable account to recognize the increase in the company's accounts receivable from the sale and crediting the Sales Revenue account to record the revenue generated from the sale.

To record the cost of inventory sold, on March 17, 2015, the Inventory account is debited for the cost of the inventory sold ($25,000), and the Cost of Goods Sold account is credited to recognize the expense incurred when the inventory is sold. This reflects the reduction in inventory and the corresponding increase in cost of goods sold.

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Identify one piece of music shared during this presentation that captured your attention.
Please describe what you liked about the music or what the speaker had to say about it.

Answers

Music has a powerful way to take attractions of people mostly during the event

21. What are employee incentive plans and what do they offer?

Answers

Employees that create more are encouraged to do so and are rewarded accordingly under the incentive plan. The phrase "Pay for Performance" describes remuneration choices such merit pay, commission, individual incentive, group incentive, and gain-sharing plans.

What exactly are employee incentive programs?

A company may decide to adopt an employee incentive program to encourage staff productivity. Employee incentives are a system that recognizes and rewards effort and success in the workplace by providing employees with the chance to receive prizes or recognition.

Why do workers appreciate incentive plans?

Businesses may boost productivity, lower attrition, and reduce production costs by implementing reward programs for their staff. It raises morale, motivates staff, and fosters collaboration by increasing employee involvement. The incentive programs benefited the labor as much as the businesses.

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What is the potential award amount for the Pell Grant and does Imani have to pay this back?

Answers

Answer with Explanation:

The Potential amount for the Pell Grant largely depends on you family income and asset worth. The maximum Pell Grant award for the year 2019-20 is $6,195 and maximum award per term is $3,097.

We don't have to pay back the Pell Grant but under certain circumstances which are listed as under:

Early withdrawing from the program that let you qualify for the grant.Enrollment status changed during the execution of program.Received Other ScholarshipsYou qualified for Teach Grant but later you didn't met the requirements for the grant.

A system that a country chooses to allocate its resources and distribute its goods and resources. ​

Answers

Answer: Your answer is an economic system.

Hope this helped!

hae-sook has joined the marketing department of an electronics retailer that will be exploring the market potential for a new product. what will be the first step in the marketing research process that hae-sook’s team will undertake?

Answers

The first phase in the marketing research process that Hae-Sook’s team will carry out is defining the objectives and research needs.

Making informed judgments for marketers and the senior leadership of a firm requires the use of marketing research. Researching the market might need highly specific abilities that go beyond the knowledge covered in this session. Each marketer should be knowledgeable about the fundamental methods and approaches used in marketing research, though.

A marketing professional will almost certainly need to oversee an internal marketing research project at some time or collaborate with an outside marketing research company to carry out a research study.

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describe the color white to a blind person

Answers

The color white it’s a color that starts every other color that you know

how do you the accounting equation​

Answers

Answer:

1. Assets = Liabilities + Owner Equity.

2. Liabilities = Assets - Owner Equity.

3. Owner Equity = Assets - Liabilities.

What are tic tac like what is good for you

Answers

Answer: Ingredients. Sugar, fructose, maltodextrin, peppermint essential oil, rice starch, gum arabic, filling agent (magnesium salts of fatty acids), glazing agent (carnauba wax).

Explanation:

They are NOT good for u. :(

How can being smart, kind and generous make you a better person? Click to add to​

Answers

Answer:

it will help you in life

Explanation:

when your kind and generous you can get a better job and to help you make friends and also you can be smart  because you can apply to be a teacher or a tutor to help others

The store determined it will cost $95,800 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Marigold estimates the fair value of the obligation at December 31 is $82,000. Write down its journal entry.

Answers

Answer and Explanation:

The journal entry is shown below:

Parking Lot A/c Dr. $82,000

         To Asset Retirement Obligation A/c $82,000

(being the parking lot is recorded)

Here we debited the parking lot as it increased the assets and credited the asset retirement obligation as it also increased the liability

The amount i.e. to be recorded should be equivalent to the fair value of the obligation and the same is to be considered  

Many ERP implementations fail to realize all the benefits because they don't provide the system with enough network ________.
A) bandwidth
B) traffic
C) software
D) hardware
E) none of the above

Answers

The correct answer is: A) bandwidth. Many ERP implementations fail to realize all the benefits because they don't provide the system with enough network bandwidth.

Bandwidth refers to the maximum amount of data that can be transmitted over a network or communication channel in a given amount of time. It is typically measured in bits per second (bps), and it determines how much data can be transmitted at once.

In practical terms, bandwidth refers to the capacity of a network or communication channel to transfer data. A higher bandwidth means that more data can be transferred in a given amount of time, while a lower bandwidth means that fewer data can be transferred.

Bandwidth is an important factor in determining the speed and performance of a network or communication channel. For example, a network with high bandwidth can support faster download and upload speeds, faster data transfer rates, and better streaming quality.

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Billy never lets money stay in his pockets, he thinks if it is there he has to spend it. Often he spends it on useless "stuff". Billy works pretty hard at landscaping jobs. He's only in the 8th grade, but has goals to get a car, go to college and buy a big house. What advise do you have for him?

Answers

Answer: See explanation

Explanation:

Based on the information given in the question, the advise for Billy is that he should save his money rather than purchasing things that are useless.

He has goals to get a car, go to college and buy a big house but he's rather spending on useless stuff. This will make his goals harder to achieve but saving the money for future purpose is essential to achieve his dreams and meet other demands.


The GUI is an index used by the OS to manage computer files,
O False
O True

Answers

Answer: I think it's true

The HR manager of Veep Communications notices a lot of employees waste valuable time surfing social media websites. The HR manager requests you (a network administrator) to prevent the employees' access to these websites. Which of the following firewalls will you use in this scenario?

Answers

Application Layer Firewall is used by the HR manager of Veep Communications.

What is the Application Layer Firewall?

A sort of firewall that regulates traffic to, from, or by an application or service is known as an application firewall. Application firewalls, also known as application layer firewalls, utilize a set of policies to decide whether to restrict or allow communications to and from an app.

When the HR manager of Veep Communications realizes that many of his workers are wasting crucial time on social networking websites, he employs the Application Layer Firewall.

Therefore, it is an Application Layer Firewall.

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Straight commission plans are plans that Group of answer choices are common among insurance and real estate agents. are useful when the organization wants salespeople to concentrate on listening to customers. provide a straight salary to employees. are uncommon among car salespeople. are used to attract risk-averse employees.

Answers

Answer:

are common among insurance and real estate

Explanation:

The straight commission plans are the plans that are given to the employee by the company in terms of the sales to be done by the employee. It is basically a straight commission that depend upon the percentage of the sales made. No extra salary or amount should be given

So this would be common in the insurance and real estate area as it deals in buying and selling of insurance and real estate properties

hence, the first option is correct

Which of the following statistical selection techniques is least desirable for use by an auditor? -Sequential selection. -Systematic selection. -Stratified selection. -Block selection.

Answers

Out of the statistical selection techniques, the least desirable technique for use by an auditor is block selection. An auditor can use different methods to select a sample from a large group. For example, the auditor could use sequential selection, systematic selection, stratified selection, or block selection.

Sequential selection is a technique that involves selecting elements in a predetermined order. Systematic selection, on the other hand, involves selecting a starting point at random and then selecting every nth element after that point.

The block selection method, on the other hand, involves selecting elements that are grouped together. In this method, the auditor divides the population into blocks and then randomly selects blocks from the population.

While this method may be useful in some situations, it can result in a biased sample if the population is not evenly distributed among the blocks. For this reason, block selection is considered the least desirable technique for use by an auditor.

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Please help will mark brainliest!

Please help will mark brainliest!

Answers

36. Good A is inferior to Good B.

37. Substitution ?

38. Good A & B are complements.

Hope this helps.

limit pricing will effectively deter entry when multiple choice the entrant must commit to enter the market. the incumbent links the pre-entry price to post-entry profits and has incomplete information and the entrant must commit to enter the market. the incumbent links the pre-entry price to post-entry profits. the incumbent has incomplete information.

Answers

In a scenario involving limit pricing as a deterrent strategy, the incumbent firm sets a low price in the market to prevent potential competitors from entering. The entrant is required to make a commitment to enter the market, and the incumbent links the pre-entry price to post-entry profits.

The scenario you described involves a strategic decision by an incumbent firm to deter entry by a potential competitor through limit pricing. Let's break down the key elements:

Limit Pricing: Limit pricing is a strategy employed by an incumbent firm to set a low price in the market, specifically below the potential entrant's cost of entry. The aim is to make it unprofitable for the entrant to enter the market, thereby deterring competition.

Commitment to Enter: In this case, the potential entrant is required to make a commitment to enter the market. This commitment can be in the form of a contractual obligation, significant upfront investment, or other binding agreements that indicate the entrant's intention to enter the market.

Incumbent's Information: The incumbent firm has incomplete information about the potential entrant's cost structure, profitability, or other relevant factors. This lack of information can make it challenging for the incumbent to accurately assess the entrant's potential to compete effectively.

Linking Pre-entry Price to Post-entry Profits: The incumbent links the pre-entry price it sets in the market to the post-entry profits it expects to earn. This means that the incumbent considers the impact of its pricing strategy on future profitability and attempts to maintain a level of profit that would be lower if entry were to occur.

By employing limit pricing, the incumbent hopes to discourage entry by making it economically unattractive for the potential entrant. The incumbent takes advantage of its market position, incomplete information, and the commitment required from the entrant to maintain its dominant position and discourage potential competition.

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US Government uses
____ income taxes to collect revenue.

Answers

Direct. Hope this helps
I think the answer would be direct

selling stockholders who are offered cash or another company's stock in a merger may be willing to part with the shares because multiple choice the offered shares may be more marketable. the price they are offered may be above market value. they can attain a greater degree of diversification as a result. all of these options are true.

Answers

All of the options listed are true. Selling stockholders who are offered cash or another company's stock in a merger may be willing to part with the shares because they can attain a greater degree of diversification, the price they are offered may be above market value, or the offered shares may be more marketable. In other words, there are multiple reasons why a selling stockholder may choose to accept an offer in a merger.


It's important to understand why each of these options is true. When a selling stockholder receives an offer of cash or another company's stock in a merger, they may be able to attain a greater degree of diversification. This means that they can spread their investments across multiple companies, which can reduce their overall risk. Additionally, the price they are offered may be above market value, which means they can make a profit by selling their shares. Finally, the offered shares may be more marketable, meaning that they can be easily sold on the open market. All of these factors can make it more attractive for selling stockholders to accept an offer in a merger.

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In Citation when you use the exact words from a source, you are ______________________.

Answers

Answer:

Quoting

Explanation:

or something along those lines

The answer to your question is Quoting

the securities exchange commission is an administrative agency. the chief purpose of such agencies and the rules and policies they administer is to

Answers

The Securities Exchange Commission (SEC) is an administrative agency. The chief purpose of such agencies is to impose uniform laws on the states.

What is the securities exchange commission?

In an effort to encourage ethical business practices, the disclosure of critical market information, and the prevention of fraud, the Securities and Exchange Commission regulates securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. In the wake of the 1929 Wall Street Crash, the United States federal government established the independent U.S. Securities and Exchange Commission. The SEC's main goal is to uphold the law against market manipulation. Similar to the Securities and Exchange Commission in the United States, the Securities and Exchange Board of India (SEBI) is the principal regulator of Indian securities markets. The capacity to penalize offenders is just one of SEBI's many regulatory, investigation, and enforcement tools.

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I am conducting a survey as a project. I need ur help Which one you like 1. Ferrari 2. Lamborghini 3. Mclaren and why?? ( If you couldnt give your choice as an answer, then write it in the comment box below the question )

Pls help

Answers

Answer:

Explanation:

Compared to the McLaren, the Lamborghini has less power, a heavier engine, and less active aerodynamic designs. This allows the Huracán Performante to be an excellent supercar with extreme sounds, feels, and the excitement of a Lamborghini, but in performance the McLaren is superior.

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $1,150 cash from the issue of common stock. 2) Borrowed $620 from a bank. 3) Earned $800 of revenues cash. 4) Paid expenses of $290. 5) Paid a $90 dividend. During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $525 of common stock. 2) Repaid $360 of its debt to the bank. 3) Earned revenues of $950 cash. 4) Paid expenses of $440. 5) Paid dividends of $140. What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2

Answers

The amount of the total assets that should be reported on the balance sheet at the closing of year 2 is $2,725.

The following formula should be used for determining the total assets:

= Acquired cash + borrowed amount + revenues earned - expenses paid - dividend paid + issuance of the additional common stock - repaid debt amount + revenues earned - expenses paid - dividend paid

= $1,150 + $620 + $800 - $290 - $90 + $525 - $360 + $950 - $440 - $140

= $2,725

Therefore we can conclude that the amount of the total assets that should be reported on the balance sheet at the closing of year 2 is $2,725.

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Two forces of 100 Newtons and 25 Newtonsact concurrently on an object. These two forcescould have a resultant force ofA) 0 NB) 50 NC) 100 ND) 150 N Is ______ correlated with the level and efficiency of financial markets and institutions.' What is the only difference between the reactant and product side of a chemical reaction? Project Management Software is a helpful tool for organizations to use because it: helps managers track employee assignments and progress edits projects in search of inconsistencies and errors allows employees to access shared documents from anywhere stores all previous projects so they can be accessed later t trasd ard urvens persctective of tuainess. difererces in largumge tailite difterenoes in nonvetak ocrmurication and bunitess atiosettie diterences in busiress shiltis Consider the equation 1/4y=1.5x. Solve the equation for y to find the constant of proportionality.The constant of proportionality for the equation is question tag of don't cross the road Which statement is true?A) It is a good idea to make an outline after taking notes.B) It is a good idea to make an outline before choosing a topic.C) An outline should be written before taking notes.D) Notes should have a title, main idea, and supporting details. What is the exponential smoothing forecast for period 5 assuming that alpha \( =0.4 \) ? (Keep 2 decimals in your answer) . question 11 match the feature on mars with the best terrestrial analogy. be sure to think broadly. the analogy can be geological, chemical, or conceptual. cross-bedded sandstones in the crater in which opportunity landed. 1. escalante canyon, utah. 2. channeled scablands in northwestern united states. 3. the caldera at kilauea, hawaii. 4. the rio tinto, spain, 5. ancient cemented dunes in zion national park, utah. 6. intermittent flooding zones in the andes. 7. sea floor spreading zone (maybe?). 8. plankton in ocean sediments. 9. the arid western united states. 10. dendritic channels everywhere. 11. no good terrestrial analogy. Suppose I have a class Parent with a subclass Child. If I declare a variable Parent obj, describe how the JVM looks up at runtime the correct method to call when obj.toString() is invoked. Help Me Please Will Mark Brainliest An average CVS charges $1.29 for a candy bar. If you buy a candy bar every weekday Mon-Fri, how much Is that a week, a month, and a year? What is 7 2/3-(1 2/4+3 6/8)? And how do you get to the answer f(x) = x^2 + 4x + 20 find the real roots. take your time if you want :) Can someone please tell me the mad for this question! Good interpersonal communication skills can prevent negativity, confusion, conflict andprofitabilityan adverse affect to the company's bottom linelow turnover Tell weather DEF and GEF can be proven congruent. A) Yes, DEF and GEF can be proven congruent by SSS. B) No, DEF and GEF arent congruent because they share a side. C) No, there isnt enough information provided. D) Yes, DEF and GEF can be proven congruent by HL. What is the formula or equation for this problem I dont understand !!!please help!!!how do disagreements over immigration policy reflect the benefits and challenges of a diverse population? I need help with Number 6 Please include an explanation if possible