Friday
April 24, 2015

Homework Help: Finance

Posted by Nick on Tuesday, April 12, 2011 at 2:23pm.

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5 year, $6,000,000 bank loan to finance service equipment. The loan has an interest rate of 10% and would be amortized over 5 years, with 5 end-of-year payments. Sutton can also lease the equipment for 5 end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment?
Note: subtract the loan payment from the lease payment

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Members