The probability that an American CEO can transact business in a foreign language is .40. Fourteen American CEOs are chosen…

The probability that an American CEO can transact business in a foreign language is .40. Fourteen American CEOs are chosen…

Your employer, Barnaby Well Company, is considering the acquisition of a new drill truck and your boss has asked you to evaluate the decision that she has made to buy the truck.ÿ The truck has a purchase price of $60,000 and a useful life of 4 years and a zero salvage value.ÿ Barnaby can borrow to buy the truck for $60,000 or lease the truck for $15,000 for 4 years, paid at the beginning of each year.If debt is used to buy the truck, Barnaby can borrow at 8% annual interest, with payments at the end of each year. The marginal tax rate for the firm is 40%.ÿ The asset is classified as a 3-year cost recovery asset for depreciation purposes.ÿ According to the current tax laws, Barnaby is allowed to use MACRS depreciation with 30% rate for year one, 45% for year two, 20% for year three and 5% for year four.ÿ There will be no salvage value at the end of the fourth year.Questions:Present your analysis of the assigned problems in Excel format. Enter non-numerical responses in the same worksheet using textboxes.By deliver your assignment to the Create the file with the following name: .ÿ


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