What is the npv of the lease relative to the borrow and, Financial Management

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What is the npv of the lease relative to the borrow and

You are working for the finance department at ACME Corp. You are acquiring equipment and must decide if it is better to do a financial lease or to borrow and buy.

Initial cost; $1000

MACRS 3 year depreciation (33.33, 44.45, 14.81, 7.41)

Tax rate: 35%

Cost of debt: 6%

Annual lease payment: $250

What is the NPV of the lease relative to the borrow and buy? Please use Excel to find your answer.

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Financial Management: What is the npv of the lease relative to the borrow and

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Financial Management: What is the npv of the lease relative to the borrow and

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