make amortization table for Purchase tractor for $267,000, minus the $42,000 allowed for trade-in value of old tractor, which has a tax basis of $0. They can pay off the difference in five equal annual payments starting in 12 months. The annual interest rate is 5.6%.,You are given the following additional information to analyze this decision: Cost of capital is 7.5 % Marginal income tax rate of 28% Assume that purchasing the tractor allow you to expense the full purchase cost and that you can also expense the purchase expense at the end of the lease period