Please answer all 3

Question 1 (1 point) Saved Tinker is considering the lease of an electronic welder costing $210,000 from Tailor Leasing. The period of the lease will be 6 years. The welder will be depreciated as a 5-year class asset under MACRS rules. (MACRs 5-year asset class percentages: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%). Tinker's marginal tax rate is 40%. Annual, pre-tax lease payments will be $40,000, and will occur at the beginning of each year. The estimated salvage value of the asset is $10,000. Compute the NAL assuming Tinker's after-tax cost of borrowing is 15%. $42,400 $44,980 $46,302 $45,650 Question 2 (1 point) Precast Inc. wishes to lease a printing press valued at $75,000 from Molding Corp. for a 4-year time period. Molding Corp. expects to depreciate the asset using 3-year MACRs rates (33%, 45%, 15%, and 7% respectively). The press is expected to have a salvage value of $8,000 at the end of 4 years. If Molding Corp. requires a 12% after- tax rate of return on the lease, what is the minimum lease payment that it will require from Precast? Assume that lease payments will occur at the beginning of the year and that Molding's marginal tax rate is 40%. $22,503.35 $21,049.59 $23,423.91 $25,302.45 Question 3 (1 point) Happy Rock Corporation needs manufacturing tools for production during the next three years. In order to buy the tools, the firm can borrow the purchase price of $4,800,000 at a 10% rate. The purchase price of the tools would be depreciated on a straight-line basis, and annual maintenance costs associated with ownership are estimated to be $240,000. However, a planned change in the firm's production technology will make the tools obsolete after three years, and so Happy Rock is considering a leasing arrangement to finance them instead. Under a lease arrangement, the company can make three equal end-of-year lease payments of $2,100,000, and the lessor will be responsible for annual maintenance expenses. Assume Happy Rock's marginal tax rate is 40%. What is the net advantage to leasing (NAL) for Happy Rock? $110,492 $105,309 $106,191 $108,403