27 28 TABLE 25.3 SPREADSHEET Cash Flows from Buying and Borrowing Using the Lease- Equivalent Loan 29 30 Year 0 1 2 3 4 5 31 32 33 34 Lease-Equivalent Loan ($) Loan Balance (PV at 0.0%) Buy with Lease-Equivalent Loan ($) 2 Net Borrowing (Repayment) 35 3 Interest (at 8.0%) 36 4 Income Tax Shield at 25% 37 5 Cash Flows of Loan (After-Tax) 38 6 FCF Buy (50,000) 39 7 Cash Flows of Borrow + Buy (50,000) 10