Find the net advantage to leasing for learning bee

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Reference no: EM131190595

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Learning Bee is a for-profit university with a 10% tax rate. They need a new mini-bus for the campus. They can either buy or lease the bus. A new bus costs $123,000. It has a 6-year life with no salvage value. Depreciation is straight-line over 6 years. The interest rate (before taxes) is 8%. If they lease, there will be 6 prepaid lease payments of $23,000. Find the net advantage to leasing for Learning Bee. Will they lease?

Reference no: EM131190595

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Find the net advantage to leasing for learning bee : Learning Bee is a for-profit university with a 10% tax rate. They need a new mini-bus for the campus. They can either buy or lease the bus. A new bus costs $123,000. It has a 6-year life with no salvage value. Depreciation is straight-line over 6 yea..

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