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Precision Tool is trying to decide whether to lease or buy some new equipment for its...

Precision Tool is trying to decide whether to lease or buy some new equipment for its tool and die operations. The equipment costs $50,000, has a 3-year life and will be worthless after the 3 years. The pre-tax cost of borrowed funds is 9 percent and the tax rate is 34 percent. The equipment can be leased for $17,500 a year.

What is the net advantage to leasing?

When calculation this with Excel I keep getting the wrong answer can you help me figure out how to do this problem in excel?

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jeff jeffy answered 1 year ago
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