商務(wù)金融 英文題 英文回答
Able Barnes manages a small olive oil manufacturing business and is currently faced with a decision about how to finance a new machine for the factory.The business can buy the machine for $184,000 and it can be depreciated at a prime cost rate of 25% per year,based on a 4 year life.The business can borrow the money for the machine through a bank loan with a fixed interest rate of 14% p.a.and an after-tax cost of 9.8% per annum.Alternatively,the business can lease the machine from a finance company over a four year period with annual payments of $40,000 and an option to buy the machine for $50,000 at the end of the lease.Able expects that the business would take up this option.The first lease payment would be due as soon as the lease contract was signed.The business is subject to a tax rate of 30% and any tax benefits (or those foregone) from the lease would be received in the year following the lease payment.
Able has sought your advice on the following:
(a) Should the business lease the machine or borrow to buy the machine?
(b) Able wonders if promissory notes,or some other form of short-term funding,might be a good way to finance the machine purchase.
Provide Able with his requested advice.Limit your response to two A4 pages.Ensure that it is clear how you calculated any figures.
幫忙翻譯下中文也可以的