Question

In: Finance

Ft. Myers Marina can lease $31,800 of equipment for $7,200 a year for five years. If...

Ft. Myers Marina can lease $31,800 of equipment for $7,200 a year for five years. If purchased, the equipment would be depreciated over its 5-year life and then have a resale value of $5,900. The firm uses straight-line depreciation, borrows at 8 percent, and has a tax rate of 21 percent. What is the net advantage to leasing?

Multiple Choice

  • −$851

  • −$1,022

  • −$961

  • −$808

  • −$1,211

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

JUST WRITTEN IN EXCEL, NO EXCEL FUNCTION IS USED

jeff jeffy answered 1 year ago
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