Present value of cost of owning

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Todd co is deciding to purchase or lease an automatic casting machine that will cost 15000, to be depreciated straight-line basis over a 5-year period. tax=50%. Actual expected salvage value = 2100. Maintenance & insurance expenses = 1000. Todd co can borrow funds at before-tax rate of 8%. Lease details: lease payment = 4200.

Required:

a. Present Value of Cost of Owning.

Reference no: EM133071641

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