15. Dynamic Mattress decides to lease its new mattressstuffing machines rather than buy them. As a result, capital expenditure in the first quarter is reduced by

$50 million, but the company must make lease payments of $2.5 million for each of the four quarters.

Assume that the lease has no effect on tax payments until after the fourth quarter. Construct two tables like Tables 29.5 and 29.6 showing Dynamic’s cumulative financing requirement and a new financing plan.

Check your answer using the “live” spreadsheet on the book’s Web site, www.mhhe.com/bma .