. Leasing a) SkoFin Leasing offers rental of IT hardware for companies in Poland....
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Finance
. Leasing
a) SkoFin Leasing offers rental of IT hardware for companies in Poland. Consider a $2.800 Notebook from a famous brand, which lasts for 4 years and can be depreciated immediately. What is the break-even operating lease rate for such a Notebook, before and after tax. No inflation to be considered. SkoFin has pretax administrative costs of $100 per Notebook in each of years 1 to 4. The cost of capital is 6,5 % and the tax rate is 30 %. Lease payments are made in advance, that is, at the start of each year. Please present your solution in an appropriate table, covering the 4-years period plus the necessary calculations.
b) Please explain at least overall 3 advantages/disadvantages of Leasing. What considerations should a CFO have ?
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