What is the incremental after-tax cash flow

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Reference no: EM132004313

Quick Express Ltd is considering leasing a computer. Details are as follows:

Lease term 3 years

Annual lease payments $100 in advance

Computer cost $360

Salvage zero

Depreciation straight line over 3 year life

Corporate tax rate 30%

Quick's borrowing cost 8%

What is the incremental after-tax cash flow from leasing in year 0?

-$360

$290

-$260

$360

Reference no: EM132004313

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