Question: Lease or buy decision ( sec a . c , d , e , f ) Cost of Asset 5 3 0 , 0 0

Lease or buy decision (sec a.c, d,e, f) Cost of Asset 530,000; Book value after 6 years will be 50,000, which is expected to be realised. Straight line method of dep Annual lease payment 120,000, payable at end of the year for 5 years Interest Rate 7% p.a. Tax rate 40% What is the discount rate to be used for PV calculation? Post tax cost of debt

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