a. What asset amount will be reported on the balance sheet?

b. What liability will be reported on the balance sheet? RestJet is planning to lease an Airbus 320 aircraft for $10 million per year for ten years, with the first payment one year hence, or to purchase it at a cost of $65 million. RestJet has a weighted average cost of capital (WACC) of 13 percent. A creditor has indicated that it would be willing to make the loan at a cost of 10 percent. Should the RestJet buy or lease the aircraft? The company tax rate is 0 percent. The aircraft will be used for ten years, with no salvage value.