Marschall's is trying to decide whether to lease or buy some new equipment. The equipment costs $62,000 and has a 4-year life. The equipment will be worthless after the 4 years and will have to be replaced. The company has a tax rate of 35 percent, a cost of borrowed funds of 9 percent. The equipment can be leased for $16,500 a year. 

What is the amount of the after-tax lease payment?

Answer rating: 100% (QA)

To calculate the aftertax lease payment we first need to dete... View the full answer