louisus1/02853/quizzes/2454649/take ?Capital One Custome oles Power & & PNC Bank
ID: 2559265 • Letter: L
Question
louisus1/02853/quizzes/2454649/take ?Capital One Custome oles Power & & PNC Bank-PNC Onli D marion county housi ?https://cgifederalsec?RealOEM com Selec D loop meteo Jim owns a lawn care service. He would like to obtain a new heavy duty trailer to haul his equipment and materials from job to job. He's found one that will suit his needs. The purchase price is $8,500. Jim is in a 28% tax bracket and sales taxes are 5%. The cost of capital for Jim to purchase the trailer is 8%. The trailer qualifies for 5 year MACRS depreciation method. Jim intends on using the equipment for 60 months. The salvage value of the trailer at the end of the use period is $4500. Jim has also found a dealer that is willing to lease the trailer to him for 60 months for $150 per month. The lease payments would be due at the beginning of the month. Determine if Jim should lease or buy this trailer. What is the total Lease Payment (include taxes)? $150 $157.50 5 pts Question 18 Referencing problem 17 What is the net after-tax monthly lease expense? 113.40Explanation / Answer
Ans: $157.50
Explanation:
Total Lease payment (including taxes) = Lease payment + Sales Taxes
= $150 +[ 5% x 150] = $157.50
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.