Tax rate: 34.00% Equipment cost: $715,000
Pretax Interest rate 9.50% Lease payment: $160,003
Five-Year Residual
Interest MACRS3 Depr. Depr. Cash Flow !:.Q.gn
Payment Principal Depr. before Tax after Cash Cash
Year af1erTax2 Paymenr Rate Tax Savings Tax4 Outflow5 Outflow6