Construction Accounting and Financial Management, Chapter 18, Problem 6. Solve Example 18-6 using a spreadsheet. You should be able to determine the new NPV by changing the MARR, marginal tax rate, purchase price, salvage value, loan interest rate, loan fees, or lease payment.

aitel alternative gets a $3,0U AFTER-TAX CASH FLOWS Now that we have discussed a number of tax that affect the financial attractiveness of alternati ready to incorporate them into the comparison tives. A common decision that must be comparedea- of alterna- after-tax basis is the comparison of leasing a vehicle purchasing a vehicle. In the next example, we compare t alternatives of obtaining a vehicle: the purchase of the cle using cash, the purchase of the vehicle through fina and leasing the vehicle with an operating lease. vehi- ncing Example 18-6 Your S corporation needs a new truck for its operations and is looking at three alternatives. The first alternative is to lease the truck for 60 months. The monthly lease payment is $525 per month with the first payment due in April. At the end of the lease, the truck will be re- turned to the dealer. The lease is considered an operat- ing lease and excludes all maintenance and operational costs. The second alternative is to purchase the truck with a 60-month loan at an interest rate of 9% (APY 9.38). The loan has $250 in origination fees. The truck's entire sale