Casher Industries leases a significant portion of its assets, expecting $25 million in rental expense next year.

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Casher Industries leases a significant portion of its assets, expecting $25 million in rental expense next year. Casher Industries can borrowat 7 percent and the average life of leased assets is seven years. Estimate the value of leased assets. If you misestimate the average life to be 10 years, how large will the valuation error be?
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Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

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