sample_excel_sol_chapter-21

sample_excel_sol_chapter-21 - Chapter 21 Odd Problems Input...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 21 Odd Problems Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In." k" Chapter 21 Question 1-5 Input Area: Cost $4,500,000 Life of machine 4 Lease price $1,350,000 Borrowing rate 8% Tax rate 35% Output Area: 1) Depreciation tax shield $393,750 Aftertax cost of debt 5.20% Aftertax lease payment $877,500 Total cash flow $1,271,250 NAL $13,074.25 You should lease. 2) NAL $(13,074.25) 3) Breakeven OCF $1,274,954.24 Aftertax lease payment $881,204.24 Breakeven lease payment $1,355,698.83 4) If the tax rate is zero, there is no depreciation tax shield foregone; the aftertax lease payment is the same as the pretax payment, and the aftertax cost of debt is the same as the pretax cost....
View Full Document

Page1 / 13

sample_excel_sol_chapter-21 - Chapter 21 Odd Problems Input...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online