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Precision Graphics Ltd . ( PGL ) is looking at modernizing its facilities. As part of that process, PGL has decided to acquire new high
Precision Graphics LtdPGL is looking at modernizing its facilities. As part of that process, PGL has decided to acquire new highspeed colour laser photocopiers. It has the option of buying the machines for $ or leasing them for years. PGL would be able to finance of the purchase with a year, loan. If purchased, PGL would also purchase a year maintenance contract for $ per year, payable at yearend. Annual lease payments, including maintenance, would cost $ There is not expected to be any residual value at the end of the lease. PGLs tax rate is and the equipment falls into Class with a CCA rate. Should PGL buy or lease the copiers? find nal. If the copiers had a residual value of $ what difference would that make to the leasing decision? answer # #
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