wheat chex leases a theesher from john deere. the cost of the thresher is 2,000,000. the lease will last for two years. the company uses straight line depreciation over 5 years to depreciate the equipment. the salvage value is 1,500,000. the corporate tax rate for both firms is 40%. the cost if borrowing is 10% and required rate of return is 15%.

what is adter tax salvage value?

what is present value of after tax salvage value?

If the present value if other non salvage value cashflows is 1,000,000 what is the NAL of the lease?