Question: ABG company needs a new machine for the production process, the which costs 6,400,000. The machine, once purchased, will be depreciated with fixed method during
ABG company needs a new machine for the production process, the which costs 6,400,000. The machine, once purchased, will be depreciated with fixed method during 4 years and at the end of these 4 years it will not have no value. The corporate tax rate is 30% and the discount rate interest rate of 10% per annum. The company K Leasing offers to lease the same machine to ABC company for 4 years with lease payments of 1,900,000 per year paid at the beginning of each year.Ai) Consider whether the ABC company should lease the machine from K Leasing or buy it. Your answer should to show all calculations?
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