James Holliday_Week5Assignment_FI516

James Holliday_Week5Assignment_FI516 - $(240,000.00) NPV...

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Problem 18-3 a) Current Assets $25,000.00 Fixed Assets $175,000.00 Total Assets $200,000.00 Debt to Asset Current Assets $25,000.00 Fixed Assets $125,000.00 Total Assets $150,000.00 Debt to Asset b) Current Assets $25,000.00 Leased Asset Value $50,000.00 Fixed Assets $125,000.00 Total Assets $200,000.00 Debt to Asset Problem 18-4 Year 0 1 2 Purchase Investment $(1,500,000.00) Depreciation $499,500.00 $667,500.00 Tax Savings $199,800.00 $267,000.00 After Tax Salvage Value Total Cash Flow $(1,500,000.00) $199,800.00 $267,000.00 NPV (at 9%) $(885,680.94) Lease $(400,000.00) $(400,000.00) After Tax Cost $(240,000.00)
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Unformatted text preview: $(240,000.00) NPV (at 9%) $(777,532.77) NAL $(108,148.16) Energon Balance Sheet if owned Debt $100,000.00 Equity $100,000.00 Total $200,000.00 50% Hastings Corporation Balance Sheet, Operating Lease Debt $50,000.00 Equity $100,000.00 Total $150,000.00 33% Hastings Corporation Balance Sheet, Capitalized Lease Debt $50,000.00 Present Value of Lease $50,000.00 Equity $100,000.00 Total $200,000.00 50% 3 4 $222,000.00 $111,000.00 $88,800.00 $44,400.00 $150,000.00 $88,800.00 $194,400.00 $(400,000.00) $(400,000.00) $(240,000.00) $(240,000.00)...
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This note was uploaded on 05/01/2011 for the course FINANCE 516 taught by Professor Anderson during the Spring '11 term at Keller Graduate School of Management.

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James Holliday_Week5Assignment_FI516 - $(240,000.00) NPV...

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