lease answer questions 1-4 based on the following information: A and B are mutually exclusive projects. The required rate of return is 14%. • The cutoff period is 2.5 years. Year Project A Project B 0 $1,000 $1,000 200 1 550 250 Z 350 300 3 250 600 4 200 3. 2 If the company applies the NPV decision, which project should be recommended? a Project A because it has NPV of $78.81 b. Project A because it has NPV of $38.93 c Project B because it has NPV of $40.97 d. Project B because it has NPV of $100.40 If the company applies the payback period decision, which project should be recommended? a. Project A because it has payback of 2.3 years. b. Project A because it has payback of 2.4 years. c. Project B because it has payback of 2.4 years. d. Project B because it has payback of 3.2 years. e. Neither of two projects is recommended. If the company applies the MIRR decision, which project should be recommended? a. Project A because it has MIRR of 15.09%. b. Project A because it has MIRR of 12.66%. Project 8 because it has MIRR of 15-15% d. Project & because it has MIRR of 12.66% company applies P (Profitability index) decision, which project should b mended Chos Pt of 1.078 has Pf of 1099 041

Seroja Berhad (Seroja) wishes to evaluate the following two alternatives available to acquire a machine:   Lease Alternative   Seroja can lease the machine under a 5-year lease requiring lease payment of RM5,000 at the beginning of each year. All maintenance costs will be borne by the lessor and the insurance and other costs will be borne by the lessee.    “Borrowing to Buy” Alternative   The machine costs RM20,000 and will have a 5-year life. The purchase will be financed by a 5year, 15% interest. Seroja will pay RM1,000 per year for a service contract that covers insurance and other costs.   Seroja Berhad plans to keep the machine and use it beyond its 5-year life.   The machine will be depreciated as given below:   Year Depreciation RM 1 5,000 2 4,000 3 3,000 4 2,000 5 1,000   Given that the corporate tax rate is 30%. Prepare the Cash Flows Analysis by clearly showing the Net Advantage of Leasing (NAL).…

Seroja Berhad (Seroja) wishes to evaluate the following two alternatives available to acquire a machine: Lease Alternative Seroja can lease the machine under a 5-year lease requiring lease payment of RM5,000 at the beginning of each year. All maintenance costs will be borne by the lessor and the insurance and other costs will be borne by the lessee.  “Borrowing to Buy” Alternative The machine costs RM20,000 and will have a 5-year life. The purchase will be financed by a 5year, 15% interest. Seroja will pay RM1,000 per year for a service contract that covers insurance and other costs.   Seroja Berhad plans to keep the machine and use it beyond its 5-year life. The machine will be depreciated as given below:   Year Depreciation RM 1 5,000 2 4,000 3 3,000 4 2,000 5 1,000   Given that the corporate tax rate is 30%.   From the above information you are required to answer the following questions.    Give explanation to Seroja on ONE (1) benefit of…

Seroja Berhad (Seroja) wishes to evaluate the following two alternatives available to acquire a machine: Lease Alternative Seroja can lease the machine under a 5-year lease requiring lease payment of RM5,000 at the beginning of each year. All maintenance costs will be borne by the lessor and the insurance and other costs will be borne by the lessee.  “Borrowing to Buy” Alternative The machine costs RM20,000 and will have a 5-year life. The purchase will be financed by a 5year, 15% interest. Seroja will pay RM1,000 per year for a service contract that covers insurance and other costs.   Seroja Berhad plans to keep the machine and use it beyond its 5-year life. The machine will be depreciated as given below:   Year Depreciation RM 1 5,000 2 4,000 3 3,000 4 2,000 5 1,000   Given that the corporate tax rate is 30%.   From the above information you are required to answer the following questions.  Give explanation to Seroja on ONE (1) benefit of…

Seroja Berhad (Seroja) wishes to evaluate the following two alternatives available to acquire a machine: Lease Alternative Seroja can lease the machine under a 5-year lease requiring lease payment of RM5,000 at the beginning of each year. All maintenance costs will be borne by the lessor and the insurance and other costs will be borne by the lessee.  “Borrowing to Buy” Alternative The machine costs RM20,000 and will have a 5-year life. The purchase will be financed by a 5year, 15% interest. Seroja will pay RM1,000 per year for a service contract that covers insurance and other costs.   Seroja Berhad plans to keep the machine and use it beyond its 5-year life. The machine will be depreciated as given below: Year Depreciation RM 1 5,000 2 4,000 3 3,000 4 2,000 5 1,000   Given that the corporate tax rate is 30%. From the above information you are required to answer the following questions.  Give explanation to Seroja on ONE (1) benefit of leasing.…

i need the answer quickly

Solving this problem

Please don't use AI Solve it properly with correct answer and explanation

Question A company owes 500 and 1000 to be paid at the end of year one and year four, respectively. The company will set up an investment program to match the duration and the present value of the above obligation using an annual effective interest rate of 10%. The investment program produces asset cash flows of X today and Y in three years. Calculate X and determine whether the investment program satisfies the conditions for Redington immunization. Possible Answers A B C D X = 75 and the Redington immunization conditions are not satisfied. X = 75 and the Redington immunization conditions are satisfied. X = 1138 and the Redington immunization conditions are not satisfied. X = 1138 and the Redington immunization conditions are satisfied. E X = 1414 and the Redington immunization conditions are satisfied.

Lease versus Buy Consider the data in Problem 19-1. Assume that RCs tax rate is 40% and that the equipments depreciation would be 100 per year. If the company leased the asset on a 2-year lease, the payment would be 110 at the beginning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment?