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18 cost of purchasing b. Calculate the cost of leasing the equipment. after tax payment n i/yr pmt fv pv 420000 4 7% (420,000)
18 cost of purchasing b. Calculate the cost of leasing the equipment. after tax payment n i/yr pmt fv pv 420000 4 7% (420,000) Lease Option Lease Payment Tax Savings Net Cash Flow pv c. Calculate the net advantage to leasing. Should the company purchase or lease the equipn NAL (leasing-buying) iease because the NAL ispostive 30,294
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
