Your company wants to purchase a new network file server


Qusetion: Your company wants to purchase a new network file server for its wide-area computer network. The server costs $24000. Its will be obsolete in three years. Your options are to borrow the money at 10 percent or lease the machine. If you lease it, the payments will be $9000 per year, payable at the begining of each year, If you buy the server, you can apply a CCA rate of 30 percent per year. The tax rate is 40 percent. Assuming the asset pool remains CLOSED, should you lease or buy?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Your company wants to purchase a new network file server
Reference No:- TGS02754128

Expected delivery within 24 Hours