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Mr. Van Driesen is trying to decide whether or not to buy or lease a computerize grading system for his class. He can buy it for $12,000 or lease it for $1800 per for the next five years. He can get the funds for the lease, by borrowing at 8% fr the schools line of credit. The grader has no salvage value and fits into the 25% bracket. The tax rate is 33%. What is the NAL? a. $2,898.4

Mr. Van Driesen is trying to decide whether or not to buy or lease a computerize grading system for his class. He can buy it for $12,000 or lease it for $1800 per for the next five years. He can get the funds for the lease, by borrowing at 8% fr the schools line of credit. The grader has no salvage value and fits into the 25% bracket. The tax rate is 33%. What is the NAL? a. $2,898.4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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12. Mr. Van Driesen is trying to decide whether or not to buy or lease a computerized grading system for his class. He can buy it for $12,000 or lease it for $1800 per year for the next five years. He can get the funds for the lease, by borrowing at 8% from the schools line of credit. The grader has no salvage value and fits into the 25% CCA bracket. The tax rate is 33%. What is the NAL? a. $2,898.4 b. $3,164.5 c. $3,375.18 d. $3,554.3 e. $3,841.2
Transcribed Image Text:12. Mr. Van Driesen is trying to decide whether or not to buy or lease a computerized grading system for his class. He can buy it for $12,000 or lease it for $1800 per year for the next five years. He can get the funds for the lease, by borrowing at 8% from the schools line of credit. The grader has no salvage value and fits into the 25% CCA bracket. The tax rate is 33%. What is the NAL? a. $2,898.4 b. $3,164.5 c. $3,375.18 d. $3,554.3 e. $3,841.2
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