Complete a spreadsheet to evaluate a lease from a lessor’s standpoint using these data:

The tax regime uses a 20.0 per cent declining balance method, which is the DB function in Excel.
Calculate the required rental and client interest rate and produce a table of the sensitivity to leverage using the same methodology as in this chapter (see Figure 15.17).

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Capital cost Residual value Period SG&A (overheads) Bad debt Other fees payable by the lessor on signing Debt/equity percentage 100,000.00 10.00% 5.00 years (50.00) per annum starting in year 1 (inception is year 0) (10.00) per annum starting in year 1 (1,000.00) Debt Equity Tax 75.0% 10.0% 15.0% 20.0%