What is the minimum lease payment that would make purchasing a computer system and writing a 6-year lease contract on it? The price of the computer system is $175,000, it is a five-year asset for depreciation purposes, it has a residual value of $3,000, it requires $500 maintenance per year, the cost of capital is 9%, and the corporate tax rate is 40%.

Answer rating: 100% (QA)

Lease contract 6 Years Price of the computer system 175000 Depreciation years 5 Years Residual value ... View the full answer