Question Kooky Cola has just completed a NPV calculation on an investment in a new plastic moulding machine to make pop bottles. The NPV calculation was a negative (11,000). Kooky first rejected the investment proposal because it has a negative NPV, but, a member of LC's Business Finance class explained to them the need to calculate NAL. The machine would cost 175,000 and have a CCA rate of 20% and a salvage value at the end of 5 years of $10,000. The lease payments are $40,000 a year for 5 years and each payment would occur at the beginning of each year. Should Kooky Cola rent the pop machine if the firm's before-tax cost of debt is 15%. the firm's tax rate is 40%. The next 5 questions ask specifics with respect to the above What is the cost of owning? . 350,000 248,020 0 250.000 262,040 Question Kooky Cola has just completed a NPV calculation on an investment in a new plastic moulding machine to make pop bottles. The NPV calculation was a negative (11,000). Kooky first rejected the investment proposal because it has a negative NPV, but, a member of LC's Business Finance class explained to them the need to calculate NAL. The machine would cost 175,000 and have a CCA rate of 20% and a salvage value at the end of 5 years of $10,000. The lease payments are $40,000 a year for 5 years and each payment would occur at the beginning of each year. Should Kooky Cola rent the pop machine if the firm's before-tax cost of debt is 15%. the firm's tax rate is 40%. The next 5 questions ask specifics with respect to the above What is the cost of owning? . 350,000 248,020 0 250.000 262,040