Calculate the lease payment if the net cost of buying is $40,000 and the net tax rate is 40% and the PVA is 5.486.
A)$12,152.14
B)$14,600.17
C)$10,167.83
D)$11,788.89

Question

Quizplus · Accepted Answer

The lease payment can be calculated using the formula: Lease Payment = Net Cost of Buying * (1 - Tax Rate) / PVA. Plugging in the values: Lease Payment = $40,000 * (1 - 0.40) / 5.486 = $12,152.14.

Calculate the Lease Payment If the Net Cost of Buying