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A piece of equipment costs $ 1 2 5 , 0 0 0 today to buy, but company YGR Inc. ( whose cost of capital
A piece of equipment costs $ today to buy, but company YGR Inc. whose cost of capital is considering a lease arrangement. The kit has an approximate lifespan of years, at which time the salvage value is $ Annual maintenance costs performed at yearend are expected to be $these are to grow by per year If the PV of the CCA tax shield and PV of lease payments are $ and $ respectively, should YGR Inc. lease the equipment?
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