29) can i get help with that? A company is deciding whether to lease or buy new equipment that can be purchased for $33,000. If purchased, the equipment will need to be serviced at the end ofeach year. Consider the following information:• PVCCATS = $10,000• PV of Lease Payments Before-Tax = $39,000PV of Salvage Value = $8,000PV of Lease Payments Tax Shield = $18,000%3D%3D• PV of Annual Service Costs After-tax = $3,000Based on the above information, what is the present value of buying? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit anycommas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)Numeric Response

Leases is the amount of rent paid which is accrued due to the agreement between property owner and…

A company is deciding whether to lease or buy new equipment that can be purchased for $33,000. If purchased, the equipment will need to be serviced at the end of each year. Consider the following information: • PVCCATS = $10,000 • PV of Lease Payments Before-Tax = $39,000 • PV of Salvage Value = $8,000 • PV of Lease Payments Tax Shield = $18,000 • PV of Annual Service Costs After-tax = $3,000 Based on the above information, what is the present value of buying? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)

A company is deciding whether to lease or buy new equipment that can be purchased for $33,000. If purchased, the equipment will need to be serviced at the end of each year. Consider the following information: • PVCCATS = $10,000 • PV of Lease Payments Before-Tax = $39,000 • PV of Salvage Value = $8,000 • PV of Lease Payments Tax Shield = $18,000 • PV of Annual Service Costs After-tax = $3,000 Based on the above information, what is the present value of buying? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 9P

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