For the next 2 years, a lease is estimated to have an operating net cash inflow of $7,500 per annum, before adjusting for $5,000 per annum tax basis lease amortization, and a 40% tax rate. The present value of an ordinary annuity of $1 per year at 10% for 2 years is $1.74. What is the lease's after-tax present value using a 10% discount factor?

	a.	$11,310
	b.	$2,610
	c.	$9,570
	d.	$4,350

Answer rating: 100% (QA)

Ans a 11310 Explanation Present value is based on the cash flows of an activity Amortization is a ... View the full answer