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BBD Inc. is considering an equipment for its new factory. It can either purchase the equipment for 554 400 or lease it from Quicklease with
BBD Inc. is considering an equipment for its new factory. It can either purchase the equipment for 554 400 or lease it from Quicklease with 7 annual lease payments of $8.470 payable at the beginning of each year). The equipment has CCA rate of 21% and salvage value of $8.160 at the end of year 7. A BBD has tax rate of 24% and cost of debt of 7%. The asset class remains open with positively after the sale of the equipment Calculate the NPV of leasing for BBD and the maximum annual lease payment it will pay, B.QuickLease has tax rate of 33% and cost of debt of 4.9% The equipment is the only asset in the asset class for Quicklease Calculate the NPV of leasing for Quick Lease and the minimum annual lease payment it will accept
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