The Galactic Empire Inc. must purchase $5,000,000 worth of heavy blaster rifles. The Galactic Empire is...

The Galactic Empire Inc. must purchase $5,000,000 worth of heavy blaster rifles. The Galactic Empire is looking into either leasing the weapons or purchasing them. The Galactic Empire has a zero tax rate due to tax loss carry-forwards. The Galactic Empire is considering a 6-year bank loan to finance the weapons. The loan has an interest rate of 9% and would be amortized over 6 years, with 6 end-of-year payments. The Galactic Empire can also lease the weapons for 6 end-of-year payments each for $1,192,000 each. How much larger or smaller is the bank loan payment compared to the lease payment? (Subtract the loan payment from the lease payment).

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jeff jeffy answered 1 year ago

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