Question
A company is in need of a new plant to ramp up
production at its manufacturing unit. It is contemplating ways to finance the new plant and is deciding between debt or lease financing. How can it analyze the two options to decide which one would be preferable?Solution
Since both options are tax-deductible, the after-tax cost of borrowing is used to discount the cash flows under each alternative to find the NPV. The option with a higher NPV can be chosen by the company to finance its new plant.
- The historic Lucknow Pact of 1916 was negotiated between the All-India Muslim League and the Indian National Congress under the leadership of:
Match the following correctly:
Where was the final of the ACC Men’s T20 Emerging Teams Asia Cup 2024 held?
When was the Asian Handball Federation formed?
- The Sarhul festival is celebrated during which month of the Hindu calendar?
NISAR Satellite is jointly developed by which space organizations?
With reference to the revolutionary activism in India, consider the following statements:
1. It was a violent movement based on mass activity.
Match the following agreements with their related institutions or countries:
Who has been appointed as the new Chairperson of NABL?
The outside rearview mirror of modern automobiles is marked with the warning "objects in mirror are closer than they appear." Such mirrors are: