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The Kelso Corporation is interested in new computerized soda dispensers that can be purchased for $1,000. At the same time, they are approached by the
The Kelso Corporation is interested in new computerized soda dispensers that can be purchased for $1,000. At the same time, they are approached by the Leave-it-to-Leasing Company who has offered to lease the same dispensers to Kelso for $250 per year for five years. Kelso has a corporate tax rate of 34 %. The lifespan of the machines is five years and they have no resale value after five years. Kelso Corp., using a straight-line depreciation method, calculate the cost of buying decision
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