What is the incremental after-tax cash flow

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Reference no: EM132007210

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: EM132007210

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