The lease terms, which include maintenance, call for a $71,000 lease payment at the beginning of each year. WNH’s tax rate is 40 percent. Should the home lease or buy?
The lease terms, which include maintenance, call for a $71,000 lease payment at the beginning of each year. WNH’s tax rate is 40 percent. Should the home lease or buy?
Walton Nursing Home (WNH) is evaluating a guideline lease agreement on laundry equipment that
costs $250,000 and falls into the MACRS three-year class. The home can borrow at an 8 percent rateon a four-year loan if WHN decided to borrow and buy rather than lease. The laundry equipment has a four-year economic life, and its estimated residual value is $50,000 at the end of Year 4. If WHN buysthe equipment, it would purchase a maintenance contract which costs $5,000 per year, payable atthe beginning of each year. The lease terms, which include maintenance, call for a $71,000 lease payment at the beginning of each year. WNH’s tax rate is 40 percent. Should the home lease or buy?
. .
The post The lease terms, which include maintenance, call for a $71,000 lease payment at the beginning of each year. WNH’s tax rate is 40 percent. Should the home lease or buy? appeared first on My Nursing Writer.
