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to lease or to purchase? Wild Pet, Inc a Pets's food and supplement firm, is considering the acquisition of a new Cats Croquette processing machine

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Wild Pet, Inc a Pets's food and supplement firm, is considering the acquisition of a new Cats Croquette processing machine Willid Pet can purchase the machine through the use of its normal financing mix (35% debt and 68% common equity or lease Pertinent details follow Acquisition price of the machine $45,000 Usefutite 4 years Salvage value $5.000 Depreciation method Straightine Annual cash savings before tax and depreciation from the machine 515,000 Rate of interest on a four-year installment loan 12% Marginal tax rate 40% Annustrentals (four year lease) $13,000 Annual operating expenses included in the lease $1.750 Cost of capital 145 Calculate the NPV Select one a $ 430 b. 5420 . c $ 429 d. (5 428) e$ 425 11:21 PM Wild Pet, Inc a Pets's food and supplement firm, is considering the acquisition of a new Cats Croquette processing machine Willid Pet can purchase the machine through the use of its normal financing mix (35% debt and 68% common equity or lease Pertinent details follow Acquisition price of the machine $45,000 Usefutite 4 years Salvage value $5.000 Depreciation method Straightine Annual cash savings before tax and depreciation from the machine 515,000 Rate of interest on a four-year installment loan 12% Marginal tax rate 40% Annustrentals (four year lease) $13,000 Annual operating expenses included in the lease $1.750 Cost of capital 145 Calculate the NPV Select one a $ 430 b. 5420 . c $ 429 d. (5 428) e$ 425 11:21 PM

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