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calculate whether it would be nore economical to kease or buy a car: cost of the...

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Accounting

calculate whether it would be nore economical to kease or buya car: cost of the car ($35,000), term of the lease (5 years@$7,000), tax shield(40%), CCA allowance (5 year straight line),residual value (nil), finance costs (8%).

Answer & Explanation Solved by verified expert
3.7 Ratings (548 Votes)
Option 1 Buy a car Tax savings on depreciation Year 1 2 3 4 5 Depreciation 7000 7000 7000 7000 7000 Tax shield 40 2800 2800 2800 2800 2800 PV factor 8 0926 0857 0794 0735    See Answer
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