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Should you buy an asset costing 75,000$ or lease it for 12,000$ pa for 6 yrs with payments in advance if the CCA rate is
Should you buy an asset costing 75,000$ or lease it for 12,000$ pa for 6 yrs with payments in advance if the CCA rate is 25%, the tax rate is 30% and the salvage value in 6 yrs is 15,000$? The borrowing rate is 7% pa, tax shields are at the end of each yr. Calculate the NAL to support your answer. Assume the CCA pool stays open.
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