A company can calculate the internal rate of return of the incremental after-tax cash flows from financial

Question:

A company can calculate the internal rate of return of the incremental after-tax cash flows from financial leases when evaluating a lease. Calculate the IRR of the lease cash flows in question 5. To what rate should this IRR be compared? How does a company decide whether to lease the assets when they calculate the lease rate of return?

Cash flows in question 5

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...