weighted-average cost of capital, based on the greater risk involved with leasing hightechnology equipment.
A thorough sensitivity analysis based on various discount and tax. rates might help to determine under what circumstances a customer might want to lease. Sample calculations for four lease rates that Primus might offer different customers are presented in Exhibit 6. With a variety of options and scenarios to propose to Avantjet, depending on actual tax and hurdle rates, Baumann believed that Pri mus had a good chance of resurrecting the deal and meeting its sales goals for 2002. Moreover, this experiem:e would assist Primus in offering lease proposals to its future customers