Net Advantage to Leasing Assignment | Homework For You
June 9th, 2020
Dunbar Corporation can purchase an asset for $24,000; the asset will be worthless after 14 years. Alternatively, it could lease the asset for 14 years with an annual lease payment of $2,232 paid at the end of each year. The firm’s cost of debt is 6%. The IRS classifies the lease as a non-tax-oriented lease. What is the net advantage to leasing? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.Get Finance homework help today
