A financial lease has the following characteristics: Asset cost: $10,000; tax rate: 30%; CCA rate: 20%; after-tax cost of capital: 15%, lease term: 4 years, with $2,500 annual lease payments and tax shields in advance, and salvage and UCC tax shields in Year 4.Salvage is zero.The asset is part of a large pool.What important timing considerations should an analyst watch for in this analysis? What is its present value?

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The Answer of A financial lease has the following characteristics: Asset cost: $10,000; tax rate: 30%; CCA rate: 20%; after-tax cost of capital: 15%, lease term: 4 years, with $2,500 annual lease payments and tax shields in advance, and salvage and UCC tax shields in Year 4.Salvage is zero.The asset is part of a large pool.What important timing considerations should an analyst watch for in this analysis? What is its present value?

A Financial Lease Has the Following Characteristics: Asset Cost: $10,000;