Suppose the entire $2,000,000 purchase price of the scanner is borrowed. The rate on the loan is
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Question:
Suppose the entire $2,000,000 purchase price of the scanner is borrowed. The rate on the loan is 8 percent, and the loan will be repaid in equal installments. Create a lease versus buy analysis that explicitly incorporates the loan payments. Show that the NPV of leasing instead of buying is not changed. Why is this so?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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