PV of the after-tax lease patments ($95,569.99, $67,179.62, $70,721.80)

PV of the CCA tax sheild ( $17,245.34, $18,319.39, $18,880.72)

PV of the aftertax maintenance costs ($4,096.77, $0, $5,536.17)

PV of the residual value ($10,300.77,$9,063.47, $7,622.57)

"The present value of the CCA tax sheild makes leasing the equipment (more/less) valualble to Allied logistics"

"The present value of the after-tax maintenance costs makes leasing the equipment (more/less) valuable to Allied"

Allied Logistics Ltd. is considering leasing new machinery that will cost $100,000 (including shipping and installation). The lease payment is $14,000 per year for eight years, paid at the beginning of each year. Other information pertaining to the equipment and lease is as follows: Maintenance of $850 per year will be paid by the lessor. Allied's tax rate is 26%. CCA rate on the machinery is 20%. Allied's cost of borrowing is 6.5%. Estimated residual value of the equipment at the end of 8 years is expected to be 15,000 Based on the preceding information, complete the following table Value Present value of the after-tax lease payments Present value of the CCA tax shield Present value of the after-tax maintenance costs Present value of the residual value The present value of the CCA tax shield makes leasing the equipment The present value of the after-tax maintenance costs makes leasing the equipment What is the Net Advantage to Leasing (NAL) for Allied Logistics Ltd. valuable to Allied Logistics. valuable to Allied. O $6,871.69 O $4,754.81 $4,754.81 O $10,341.39