Question 1

\f\f4 Student 5158 PM Sun Oct 2 |e009_leasing (1) v ': :r'wtcwnl, LEM . - g," r :'3' :m 0H |e(309_]easingm E 5} Approach #1 Answer So should we lease? 0 The annual cost of buying the machine would be , whereas the after taX cost of leasing is $50,000 * {10.35) : $32,500 Why do we use the aftertax cost of leasing? Student 5:59 PM Sun Oct 2 93% Q N D lec09_leasing (1) ~ + 1 X . . . pter+1 x Culture_Contact_... x KAaCH+Chapter+2 x 2+Culture_contact.. x Scratchbook Fall '... x American_Home_... x 2011_Investigative... x lec09_leasing... Leasing Example #1 - Amazon (Reading on Canvas: "Amazon Seeks Cargo Planes for Air Freight Operation") In Dec. 2015, Amazon was looking to lease cargo planes to reduce reliance on traditional carriers (i.e., UPS, FedEx) Why not just buy? What might be some advantages of leasing for Amazon? 44 of 62 444 Student 6:02 PM Sun Oct 2 |e009_leasing (1) v |ecOQ_leasingm Unequal Lives Practice Quest/on There are two types of batteries that can be used in electric golf carts at the Philly Country Club: Burnout Ever-g0 Initial Cost (each) $36.00 $60.00 Life (years) 3 5 Annual cost to keep charged $100.00 $88.00 Salvage value $5.00 $5.00 0 Assume constant replacement of batteries 0 15% discount rate, 34% tax rate, straight line depreciation to a book value at salvage of zero Which battery should we choose