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Jeff & Bezos is a fresh groceries delivery company. They have access to borrowing funds at a pre - tax rate of 6 % per
Jeff & Bezos is a fresh groceries delivery company. They have 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. Jeff & Bezos
is contemplating leasing the drones for a lease term that matches the drones' economic life. It would lease them from a different company, Nets & Flicks, that currently own the
required number of the drones. Instead of leasing the fleet of the drones, Jeff & Bezos is also contemplating buying them, which would cost the company $ If the
company chooses to buy them, the drones would be losing their economic value following the straightline depreciation method during a three year period. The fleet of
drones, due to their heavy usage, would have no salvage value in three years.
Calculate the pretax lease payment that would make both Jeff & Bezos and Nets & Flicks indifferent between entering the lease agreement and walking away from itDo not round intermediate calculations and round your answer to decimal places, eg Your answer should be typed as a positive value. Breakeven lease payment
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