Leidos Company has decided to acquire a new equipment at a cost of $740,000 The equipment has an expected life of 6 years and will be depreciated using 5 year MACRS with rates of 20, 32, 192, 1152, 1152, and 0576 (note that 5 year MACRS depreciation actually takes place over 6 years) There is no actual salvage value Lincoln Financial Services has offered to lease the equipment to Leidos for $148,000 a year for 6 years, with lease payment at the end of each year Leidos has a cost of equity of 9 6 percent, a pre tax cost of debt of 6 percent, and a marginal tax rate of 20 percent What would the NPV of the lease relative to the purchase be $2,383 61 $3,054 40 $3,725 19 $4,395 98 $5,066 77

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Leidos Company has decided to acquire a new equipment at a cost of $740,000  The equipment has an expected life of 6 years and will be depreciated using 5 year MACRS with rates of  20,  32,  192,  1152,  1152, and  0576 (note that 5 year MACRS depreciation actually takes place over 6 years)  There is no actual salvage value  Lincoln Financial Services has offered to lease the equipment to Leidos for $148,000 a year for 6 years, with lease payment at the end of each year  Leidos has a cost of equity of 9 6 percent, a pre tax cost of debt of 6 percent, and a marginal tax rate of 20 percent  What would the NPV of the lease relative to the purchase be  $2,383 61 $3,054 40 $3,725 19 $4,395 98 $5,066 77

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Leidos Company has decided to acquire a new equipment at a cost of $740,000. The equipment has an expected life of 6 years and will

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