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Calculate the cash outflow under lease finance

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Reference no: EM13272137

(I) cost of asset to be financed with life of 4 years 1200 lacks.

(II) annual maintenance at the end of each year (40% borne by lessee) 250 lakhs

(III) salvage value at the end of

useful life 25 lakhs

IV) method of depreciation straight line

(V) Annual lease rental at the end of each year 500 lacks

(VI) Tax rate is 30% and cost capital is 10%

calculate the cash outflow under lease finance

 

 

Reference no: EM13272137

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