Finding economic ordering quantitymedarex is considering

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Reference no: EM13356128

Finding Economic ordering Quantity.

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: EM13356128

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