Answer:
Check the explanation
Explanation:
Given details
1. Magna charter needs a plane for a time duration of 7 years, which can be taken on lease or bought from stellar leasing company
2. In the event that Magna charter has purchase the plane, it is qualified for depreciation, depreciation being the expense; it decreases the profit, then by profit amount.
3. Therefore tax savings on depreciation is the amount of cash inflow
4. correspondingly the lease rentals is expensive, consequently reducing the profit, thereby tax amount also.
5. Magna Charter will have to select the option that gives minimal cash out flows.
6. since the cash flows are in separate periods, & they cannot be compared, thus the cashflows are discounting to today's current value.
7. Discounting of Cash flows shall be done at post tax cost of debt, thus discount rate is 8% (10% * (1- 20%)) for Magna & 6% (10% * (1- 40%) ) for Stellar leasing company.
The diagrams in the attached images below explains Magna View point
<span>A product in the _____ stage is experiencing periods of rising sales and profits.
The answer is growth,
When the company is still in the growth stage, it is normal to experience the period of rising in sales and gaining profits.</span>
You develop your labor (human capital)
Due to scarcity, choices must be made. Every choice has a opportunity cost
Everyone's goal is to make choices that maximize their satisfaction. Everyone acts in their own "self-interest"
Everyone makes decisions by comparing the marginal costs and marginal benefits of every choice.
You found it to be scarce that you were offered $3.00 dollars more than the first offer.
Answer:
Investors with an experience of financial crises are better at diversifying their portfolios
Explanation:
When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.
Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.