Sonic Transport Pty Ltd, a privately owned, medium-sized logistics provider, is considering the possibility of leasing a $492,000 truck-servicing…

Sonic Transport Pty Ltd, a privately owned, medium-sized logistics provider, is considering the possibility of leasing a $492,000 truck-servicing facility. This facility cleans and services commercial road vehicles used on long-haul trips. A financing company has offered to structure a finance lease with the first payment of $90,000 due today and with a future 4 instalments of $90,000 at the beginning of each of the next four years. According to the lease agreement, Sonic has the option to purchase the facility at $115,000 at the end of the lease in 5 years time. Alternatively, Sonic Transport can obtain a loan at an interest of 12% p.a. (before tax) to buy the facility. If bought, the facility then has to be depreciated at a prime cost rate of 20% over a useful life of 5 years. After the 5 years, the facility is estimated to have a salvage value of $150,000. Sonic is subject to a 30% tax rate. Any tax benefits (received or foregone) would be incurred at the end of the year of income.Advise Sonic on the following:Using an acceptable DCF technique, should the business lease or buy the facility? (5 marks)b. Can Sonic use promissory notes or other forms of short-term fund to finance the truck-servicing facility?Limit response your response to two A4 pages. Ensure that it is clear how figures are calculated.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more