Question: THE ANSWER IS 6 0 , 1 7 9 can you please explain how to do it . Mogul Earthworks Ltd . needs a bulldozer
THE ANSWER IS can you please explain how to do itMogul Earthworks Ltd needs a bulldozer for a year construction project. It can buy a new Caterpillar bulldozer for $ or it can lease the same machine for five years. The bulldozer can be depreciated for tax purposes over years and its salvage value at the end of that period will be $ If Mogul buys the bulldozer, it will have to pay $ per year in maintenance costs, but the maintenance costs will be covered by the lessor if it leases the machine. Mogul's cost of debt is pa and its tax rate is What is the breakeven lease payment, assuming that lease payments are made annually in advance and there is no option to purchase the bulldozer when the lease terminates? Enter your answer as a number to nearest unit
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