MC – Minimum Acceptable Lease payment for Computer, Straight-Line Depreciation
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Determine the minimum acceptable lease payment for a lessor given that a computer will be depreciated straight-line to a zero salvage value. The problem assumes that the years over which the asset is depreciated is one less than the number of lease payments: for example 5 years of depreciation, but 6 lease payments.
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