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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 6 percent
Jeff & Bezos is a fresh groceries delivery company. The company has access to borrowing funds at a pretax rate of percent 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 $ If the company chooses to buy them, the drones would be losing their economic value following the straightline depreciation method during a six year period. The fleet of drones, due to their heavy usage, would have no salvage value in six years. Instead of buying the fleet of the drones, Jeff & Bezos is also contemplating leasing them for an estimated pretax annual cost of $ for six years from a different company, Nets & Flicks, that owns the required number of drones. Nets & Flicks is in the same tax bracket as Jeff & Bezos.
Calculate Nets & Flicks's Lessor net advantage to leasing, aka NAL. Do not round intermediate calculations and round your answer to decimal places, eg If you got a negative answer, don't forget to put the minus sign.
NAL
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