A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined that he will incur the following annual costs: Costs of sales₱120,000; Marketing, admin, and maintenance ₱150,000. Tax rate is 25%. Annual depreciation is ₱110,000. Cost of capital is 11%. The breakeven lease per year would be? a. ₱ 460,000 b. ₱ 503,717 c. ₱ 521,756 d. ₱ 468,203 e. ₱ 436,127 f. ₱ 324,846
A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined that he will incur the following annual costs: Costs of sales₱120,000; Marketing, admin, and maintenance ₱150,000. Tax rate is 25%. Annual depreciation is ₱110,000. Cost of capital is 11%. The breakeven lease per year would be? a. ₱ 460,000 b. ₱ 503,717 c. ₱ 521,756 d. ₱ 468,203 e. ₱ 436,127 f. ₱ 324,846
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined that he will incur the following annual costs: Costs of sales₱120,000; Marketing, admin, and maintenance ₱150,000. Tax rate is 25%. Annual depreciation is ₱110,000. Cost of capital is 11%. The breakeven lease per year would be?
a. ₱ 460,000 b. ₱ 503,717 c. ₱ 521,756
d. ₱ 468,203 e. ₱ 436,127 f. ₱ 324,846
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