Question: F G H B E in Please do not use column A as I would like to use it to record my marking Question 2

 F G H B E in Please do not use column
A as I would like to use it to record my marking

F G H B E in Please do not use column A as I would like to use it to record my marking Question 2 (10 marks) Bruins Rock Inc. (BRI needs to expand its production capacity. In order to do so, Bilis going to acquire a machine and wants to know whether it should lease of purchase the tax rate. The terms of the lease and the purchase options are as follows: Lease: The leasing arrangement has a five (5) year term and requires beginning of the year before tax payments of $ 15.500.00 Purchase Cost of the machine Before to cost to finance Machine salvage at the end of Syd CCA Rate #VALUE! #VALUE WVALUE #VALUE! Required: a) Which financing alternative do you recommend BRI go forward with and why? Make sure to provide calculations to support your answer. [7 marks) b) What are some important qualitative factors that should be considered in the lease vs buy decision? (3 marks) Enter your answer in the text box below: Cover Sheet 01 -GEC Q2 BRI 03 MM 04 ECC 05. Bracer A G H O E Please do not use column A as I would like to use it to record ny marking Question 2 (10 marks) Bruins Rock Inc. (BRI) needs to expand its production capacity. In order to do so, BRI is going to acquire a machine and wants to know whether it should lease or purchase the machine. BRI as 32 tax rate The terms of the lease and the purchase options are as follows: Lease: The leasing arrangement has a five (5) year term and requires beginning of the year before tax payments of $ 16.900.00 10 12 Purchase: Cost of the machine S Before tax cost to finance Machine salvage at the end of 5 years CCA Rote 71.000.00 9.25% 12,000.00 16 Required: Which financing alternative do you recommend BRI go forward with and why? Make sure to provide calculations to support your answer. (7 marks) What are some important qualitative factors that should be considered in the lease vs buy decision

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