Corporate Finance Assignment/ Professional Essay Writers
May 8th, 2020
Question 1. (8 points)
Your firm is considering either leasing or buying some new equipment. The lease payments will be $25,600 a year. The purchase price is $72,800. The equipment belongs in a 35 percent CCA class and has a 3-year life after which time it is expected to have a resale value of $9.500. Your firm borrows money at 11 percent and has a 34 percent tax rate. What is the NAL of leasing for the lessee?
a. $129.
b. $1,407
c. $129.
d. $1,407.
e. $5,745. Get Finance Help Today
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