Question
Question: What is the net advantage to leasing? An auto dealer is trying to decide whether to lease or buy new equipment for polishing vehicles.
Question: What is the net advantage to leasing?
An auto dealer is trying to decide whether to lease or buy new equipment for polishing vehicles.
Cost of the equipment : $22,000.00
Useful life : 3years (Worthless after 3 years)
After tax discount rate is 2%
Annual depreciation tax shield : $1,760.00
After tax annual lease payment : $6,800.00
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Alan R. Millikan, Noah D. Glick
2nd Edition
063123098X, 9780631230984
