An asset has an installed cost of $250,000, a life of 5 years, a CCA...
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Accounting
An asset has an installed cost of $250,000, a life of 5 years, a CCA rate of 30%, and a salvage value of $5,000. This asset can be leased for 5 years at a rate of $50,000 per year, payable at the beginning of each year. The lessee's marginal tax rate is 35% and borrowing cost is 10%. What is the net advantage to leasing for the lessee? Round your answer to the nearest dollar.
$52,652
- $43,613
$33,839
$49,548
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