Valid Exam SCMA-CD Book & SCMA-CD Official Practice Test - SCMA-CD Latest Test Fee - Segnocenter

SCMA Other Certification
Cardiology
Q&A  192
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Related certification: Cardiology Cardiology 
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NEW QUESTION: 1
A company is considering whether to lease or buy an asset.
The following data applies:
* The bank will charge interest at 7.14% per annum
* The asset will cost $1 million
* Tax-allowable depreciation is available on a straight line basis over 5 years
* There is no residual value
* Corporate tax is paid at 30% in the year when the profit is earned
What is the NPV of the buy option?
Give your answer to the nearest $000.
$ ?
Answer:
Explanation:
740


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