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Finance lease-net advantage to leasing

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Reference no: EM132491536

Finance Lease: Net Advantage to Leasing

Dunbar Corporation can purchase an asset for $29,000; the asset will be worthless after 13 years. Alternatively, it could lease the asset for 13 years with an annual lease payment of $3,833 paid at the end of each year. The firm's cost of debt is 10%. The IRS classifies the lease as a non-tax-oriented lease. What is the net advantage to leasing? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132491536

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