Question
A company is deciding whether to lease or buy new equipment. If purchased, the equipment would cost $20,000. Consider the following information: PV of Lease
A company is deciding whether to lease or buy new equipment. If purchased, the equipment would cost $20,000. Consider the following information:
- PV of Lease Payments Before-tax = $12,000
- PVCCATS = $6,000
- PV of Lease Payments Tax Shield = $4,000
- PV of Salvage Value = $2,000
Based on the above information, what is the NAL?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
