80.2K

Verified Solution

Link Copied!

whats the answer for both questions please ?

A company is deciding whether to lease or buy new equipment. The equipment can be purchased for $65,000 or leased for a 5 -year period for $8,750 per year (due at the beginning of each year). The firm can borrow at an after tax rate of 12%. If purchased, the company will incur insurance and maintenance costs of $1,000 per year. The equipment has a CCA rate of 24%. Salvage value in 5 years is expected to be $3,000. The company's marginal tax rate is 34%. Calculate the Net Advantage of Lease (NAL). Round the the Net Advantage of Lease to 2 decimals (e.g 22.05), and the unit is $. Your Answer: Question 14 ( 1 point) A company is deciding whether to lease or buy a new truck. Given the information provided below, if the company finds out the truck maintenance cost is $3000 incurred by the lessor only, and paid at the end of each year. The Company should (buy / lease) A company is deciding whether to lease or buy new equipment. The equipment can be purchased for $65,000 or leased for a 5 -year period for $8,750 per year (due at the beginning of each year). The firm can borrow at an after tax rate of 12%. If purchased, the company will incur insurance and maintenance costs of $1,000 per year. The equipment has a CCA rate of 24%. Salvage value in 5 years is expected to be $3,000. The company's marginal tax rate is 34%. Calculate the Net Advantage of Lease (NAL). Round the the Net Advantage of Lease to 2 decimals (e.g 22.05), and the unit is $. Your Answer: Question 14 ( 1 point) A company is deciding whether to lease or buy a new truck. Given the information provided below, if the company finds out the truck maintenance cost is $3000 incurred by the lessor only, and paid at the end of each year. The Company should (buy / lease)

Answer & Explanation Solved by verified expert

See Answer