Question
(b) You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The scanner costs RM6,300,000 and it would be depreciated straight-line
(b) You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner.
The scanner costs RM6,300,000 and it would be depreciated straight-line to zero over four years.
You can lease it for RM1,745,000 per year for four years.
Assume that the tax rate is 36%.
You can borrow at 8% before taxes.
Justify whether you should lease or buy. (13 marks)
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Mutual Fund Industry Handbook
Authors: Gremillion
1st Edition
0471736244, 978-0471736240
