Chap $21-$ After$-$class

i

Kaleidescope Entertainment is considering buying a machine that costs $$553,000.$ The machine will be depreciated over five years by the straight$-$line method and will be worthless at that time. The company can lease the machine with year$-$end payments of

$2\mathrm{.}5$

points $$128,000.$ The company can issue bonds at an interest rate of $7$ percent. The corporate tax rate is $23$ percent. What is the NAL of the lease? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

eBook

NAL

References