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The Wyoming Wind Power Co . has decided to acquire a new piece of capital equipment. These units cost $ 7 3 , 0 0
The Wyoming Wind Power Co has decided to acquire a new piece of capital equipment. These units cost $ and they are depreciated by the fiveyear MACRS Schedule. You feel that the machines have an operating life of six years. You have discussed this matter with a Leasing Company, and they have offered you a lease with annual payments of $ for six years. Wyoming Wind Power's before tax cost of borrowing is and the firm faces a marginal tax rate. What is the Net Advantage of Leasing NAL of this lease contract? $ $ $ $ $
The Wyoming Wind Power Co has decided to acquire a
new piece of capital equipment. These units cost
$ and they are depreciated by the fiveyear
MACRS Schedule. You feel that the machines have an
operating life of six years. You have discussed this matter
with a Leasing Company, and they have offered you a lease
with annual payments of $ for six years.
Wyoming Wind Power's before tax cost of borrowing is
and the firm faces a marginal tax rate. What is
the Net Advantage of Leasing NAL of this lease contract?
$
$
$
$
$
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