Return on the incremental cash flow from owning versus leasing :
calculate the difference owning and leasing cash flows before computing the return from incremental cash flows as follow as shown below :
Formula spreadsheet as follows
Hence, the after tax cash flow is $149,285 for 15 years.
The after tax cash flow for 15 years is $149,285 and the cash outlay is $ 1,170,000.
Now, calculate the internal rate of return with the help of spreadsheet.
Hence, the return from the incremental cash flow from owing versus leasing is 13.41%.
**Part C!** Please show all work! 3. The Hub City Corporation is considering opening an office...
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