Question 11 (1 point) A company is deciding whether to lease or buy new equipment....
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Question 11 (1 point) A company is deciding whether to lease or buy new equipment. The equipment can be purchased for $70,000 or leased for a 5-year period for $8,000 per year (due at the beginning of each year). The firm can borrow at 14%. The equipment has a CCA rate of 25%. Salvage value in 5 years is expected to be $4,000. The company's marginal tax rate is 33%. Calculate PV CCATS. Round the PV CCATS to 2 decimals (e.g 22.05), and the unit is $. Your Answer: Answer units Question 11 (1 point) A company is deciding whether to lease or buy new equipment. The equipment can be purchased for $70,000 or leased for a 5-year period for $8,000 per year (due at the beginning of each year). The firm can borrow at 14%. The equipment has a CCA rate of 25%. Salvage value in 5 years is expected to be $4,000. The company's marginal tax rate is 33%. Calculate PV CCATS. Round the PV CCATS to 2 decimals (e.g 22.05), and the unit is $. Your Answer: Answer units
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