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A machine cost = $ 6000, useful life =4 years, Capital Allowances available @ 30% Reducing balance , Tax = 28% in arrears .Lease payments
A machine cost = $ 6000, useful life =4 years, Capital Allowances available @ 30% Reducing balance , Tax = 28% in arrears .Lease payments $1500 p.a in advance. Use discount factor of 9%. Which option is better ?
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