Stevens auto detailers is trying to decide whether to lease, Ask an Expert

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Steven's Auto Detailers is trying to decide whether to lease or buy some new equipment for polishing vehicles. The equipment costs $22,000, has a 3-year life, and will be worthless after the 3 years. The aftertax discount rate is 6.2 percent. The annual depreciation tax shield is $1,760 and the aftertax annual lease payment is $6,650. What is the net advantage to leasing? A. -$397.11 B. -$248.16 C. $184.92 D. $315.40 E. $462.84

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91609702

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