Question
after brigge is weighimg a lease versus a purchase of some new machinery. the purchase price is 231,800. the equipment has a 4 year life
after brigge is weighimg a lease versus a purchase of some new machinery. the purchase price is 231,800. the equipment has a 4 year life after which time it expected to have a resale value of 680000. the equipment belongs in a 30 percent CCA class and the firm can borrow money at 9.5 percent. the equipment can be leased for 62,900 a year for 4 years. the company does not expect to owe any taxes for the next 4 years because of accumulated net operating looses. compute the monetary benefits of the lease. could you propose any alternative leasing structure in place of the existing specification.
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