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3 Question 5 (1 point) Sudbury Leasing Corp. is considering the purchase of a fleet of cars for $440,000.00. It can borrow at 7.5%.
3 Question 5 (1 point) Sudbury Leasing Corp. is considering the purchase of a fleet of cars for $440,000.00. It can borrow at 7.5%. The cars will be used for 6 years. Sudbury Leasing Corp. calls a leasing agent and finds that the cars can be leased for $88,000.00 per year. The corporate tax rate is 34% and the cars belong in a 20% CCA class. Assuming beginning of period payments and salvage value of $77,000.00, what is the net advantage to leasing? O a) -$3,216.19 b) -$34,549.96 c) $17,230.20 d) -$36,624.91 e) -$19,934.18
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