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Please show how to solve using a financial calculator. Thank you MD INC is weighing a lease versus a purchase of $312,000 of fixed assets.
Please show how to solve using a financial calculator. Thank you
MD INC is weighing a lease versus a purchase of $312,000 of fixed assets. The assets would be depreciated to zero over their 4-year life after which time they can be sold for an estimated $76,000. The firm uses straight-line depreciation and can borrow at 8 percent. The equipment can be leased for $66,000 a year for four years. The firm does not expect to owe any taxes for the next five years because of its operating losses. What is the net advantage to leasingStep by Step Solution
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