Answer to Question #132331 in Other for Christabel Banda

Question #132331
Finozest Solutions Limited (Finozest) is involved in transporting commodities from Lilongwe to Lusaka. The company is required to replace its trucks regularly owing to the importance of providing a reliable service to customers. The company is considering investing in a new truck at a cost of K1.2 million. Finozest’s bank has indicated that it can offer the company a finance lease with payments of K292,510.00, payable annually in arrears for five years. There is no residual payment or value. Kindly ignore taxation. Required: 1. What is the interest rate implicit in the finance lease? 2. Assume that the bank wishes to keep the lease payment at K292,510.00 but requires that the annual payments are payable in advance. How does this change the interest rate implicit in the lease?
1
Expert's answer
2020-09-09T10:58:33-0400
Dear Christabel Banda, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS