Stoner Equipment needs $130,000 of new equipment for a project. The equipment will be worthless after 4 years. The equipment belongs in a 35 percent CCA class. The equipment can be leased for $34,500 a year. The firm can borrow money at 8.5 percent and has a 35 percent tax rate. What is the net advantage to leasing?

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The Answer of Stoner Equipment needs $130,000 of new equipment for a project. The equipment will be worthless after 4 years. The equipment belongs in a 35 percent CCA class. The equipment can be leased for $34,500 a year. The firm can borrow money at 8.5 percent and has a 35 percent tax rate. What is the net advantage to leasing?

Stoner Equipment Needs $130,000 of New Equipment for a Project