Evaluate of lease amount for provided data

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Reference no: EM1312476

Calculation of lease amount for the given data.

payment that Wrenn will require from Contech? Assume a marginal tax rate of 40%. Under the terms of the lease, payments will be made at the beginning of each of the 4 years.

computing the net advantage to leasing.

Medarex is considering the lease of an electronic welder costing $210,000 from Key Leasing. The period of the lease will be 6 years. The welder will be depreciated under MACRS rules for a 5-year class asset. Medarex's marginal tax rate is 40%. Annual beginning of the year lease payments will be $50,000. Estimated salvage value is zero. If Medarex's after tax cost of borrowing is 15%, compute the net advantage to leasing. (Problem requires MARCS tables.)

Reference no: EM1312476

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