Costs $74,000, has a 3-year life, and will be worthless after the 3 years. The aftertax discount rate is 5.5 percent. The annual depreciation tax shield is $8,633 and the aftertax annual lease payment is $16,033. What is the net advantage to leasing? Selected Answer: Correct Answer: Feedback: Question 10 5 out of 5 points Which of the following statements are correct concerning taxes and leasing? I. Tax-deferral is a legitimate reason for leasing.
