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FMDecebmber 2009 Q1 Problem ASOP co (plz solve this)

Nneon15y ago
In the answer paper, title " Evaluation of leasing" there is a item of tax saving 114000. I cant find out how it is calculated or where did the examiner get that amount :( !

Another problem.. in the last line Examiner's note : Including the financial cash flows in the NPV evaluation and discounting them by the WACC of 11% is also acceptable . ( I could not understant this line , coz he used this 11% as DF but why did he mentioned that again!)

I'll be so happy if someone solve this problem . Thanks a lot
Kkarmuks15y ago#1
ok 114,000 is 30% of 380,000 (lease rental)
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