Question: Help al Homework: HW7 - Chapter 25 Leasing Question 4, P25-6 (similar to) Part 1 of 4 HW Score: 0%, 0 of 100 points O
Help al Homework: HW7 - Chapter 25 Leasing Question 4, P25-6 (similar to) Part 1 of 4 HW Score: 0%, 0 of 100 points O Points: 0 of 20 Save Craxton Engineering will either purchase or lease a new 5747,000 fabricator. I purchased the fabricator will be depreciated on a straight-in basis over seven years Craxton can lease the fabricator for $125.000 per year for seven years. Craston's tax rate is 35%. (Assume the fabricator has no residual value at the end of the even me years) a. What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease? TIEN 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? Help Qu a. What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease? The free cash flow at t=0 - $(Round to the nearest dolor)
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