Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be
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a. What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease?
b. What are the free cash flow consequences of leasing the fabricator if the lease is a true tax lease?
c. What are the incremental free cash flows of leasing versus buying?
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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