Question: I hope the answer including the Formula , without using the Excel c) Aidil Company is considering buying new equipment that costs RM600,000. The equipment

I hope the answer including the Formula , without using the Excel

c) Aidil Company is considering buying new equipment that costs RM600,000. The equipment will depreciate the straight line to zero over five years. The company can lease the equipment from Adha Leasing Company with year-end payments of RM150,000. The company can issue bonds at a 10 percent interest rate. The corporate tax rate is 40 percent. Required i. Calculate the net advantage to leasing (NAL) (10 marks) ii. Should Aidil Company buy or lease the equipment? (2 marks)

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