10 free CMA (IMA) practice questions in the real exam format, covering the official content areas, with an explanation for every answer.
CMA (IMA) Practice Test 8Tutor mode
Question 1 of 10
Corporate Finance
Renwick Clinics can lease diagnostic equipment for 4 years at $100,000 per year, paid at the end of each year, or buy it with a 4-year loan at 8%. The tax rate is 25%, and lease payments are fully deductible. Staff have calculated that the present value of the after-tax cost of buying, net of depreciation tax shields and salvage, is $270,000. The present value of an ordinary annuity of $1 for 4 periods is 3.465 at 6% and 3.312 at 8%. The best recommendation is to