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An asset has installed cost of $250,000, a life of 5 years, a CCA rate of 30%, and a salvage value of $5,000. This asset
An asset has installed cost of $250,000, a life of 5 years, a CCA rate of 30%, and a salvage value of $5,000. This asset can be leased for 5 years for $50,000 yearly lease payment, with the lease payments due at the beginning of each year. The lessee's marginal tax rate is 35% and borrowing cost is 10%. What is the NPV of this lease agreement to the lessor if it has the same marginal tax rate of 35%.
Question 6 options:
| $33,839 |
| -$49,548 |
| -$43,613 |
| -$33,839 |
| $52,652 |
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