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Witten Entertainment is considering buying a machine that costs $555,000. The machine will be depreciated over...

Witten Entertainment is considering buying a machine that costs $555,000. The machine will be depreciated over five years by the straight-line method and will be worthless at that time. The company can lease the machine with year-end payments of $130,000. The company can issue bonds at an interest rate of 6 percent. The corporate tax rate is 25 percent. What is the NAL of the lease? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 2 years ago
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