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What is the dollar amount of the NAL (net advantage of leasing) for this firm assuming the following numbers Firm tax rate =25% Firm can
What is the dollar amount of the NAL (net advantage of leasing) for this firm assuming the following numbers Firm tax rate =25% Firm can buy asset now for $50,000 Assume no maintenance if own asset or lease it If firm owns asset it gets a $50,000 deprecation deduction for tax purposes in year 1 with a tax rate =25% Firm pays three years of pre-tax rent payments at end of each year =$10,000 Pre-tax Borrowing rate =4%
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