Your firm is considering leasing a new photocopier.The lease lasts for nine years.The lease calls for 10 payments of $1,000 per year with the first payment occurring immediately.The copier would cost $8,100 to buy and would be depreciated using the straight-line method to zero salvage over nine years.The firm can borrow at a rate of 8 percent.The corporate tax rate is 30 percent.What is the NPV of the lease?

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The Answer of Your firm is considering leasing a new photocopier.The lease lasts for nine years.The lease calls for 10 payments of $1,000 per year with the first payment occurring immediately.The copier would cost $8,100 to buy and would be depreciated using the straight-line method to zero salvage over nine years.The firm can borrow at a rate of 8 percent.The corporate tax rate is 30 percent.What is the NPV of the lease?

Your Firm Is Considering Leasing a New Photocopier