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Jeff & Bezos is a fresh groceries delivery company. The company has access to borrowing funds at a pre - tax rate of 8 %
Jeff & Bezos is a fresh groceries delivery company. The company has access to borrowing funds at a pretax rate of per year. Jeff & Bezos pays income taxes using tax rate.
The company would like to start using highspeed lowaltitude drones to deliver grocery purchases directly to residential customers' backyards. The required fleet of drones costs $ The fleet of drones, due to their heavy usage, would have no salvage value in four years. If the company chooses to buy them, the drones would be losing their economic value following the threeyear property class under the MACRS depreciation method.
Instead of buying the fleet of the drones, Jeff & Bezos is also contemplating leasing them for an estimated pretax annual cost of $ per year for four years from a different company, Nets & Flicks, that currently owns the required number of the drones.
Jeff & Bezos' net advantage to leasing, aka NAL, equals
Do not round intermediate calculations and round your answer to decimal places, eg If your answer is negative, don't forget to put the minus sign.
NAL
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