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Your company requires a new truck to expand its delivery range. The cost of this truck is $38,000. The life of this asset should be
Your company requires a new truck to expand its delivery range. The cost of this truck is $38,000. The life of this asset should be 6 years with a $5,500 salvage value. Inquiries to a few banks have shown that a loan for the full amount is available with a yearly interest payment of 14%. Another option is to add this asset to the lease you already have. The leasing company has told you they will purchase it and lease it to you for a $8,300 at the beginning of each of the 6 years. The company's tax rate is 38%. and the CCA rate of the asset pool of the truck is 20%. a) illllill you proceed with the lease or buy the asset
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