Build a 5-year pro forma cash flow statement for the buy case and determine its NPV. What salvage value (to the nearest tenth of a percent or xx.x% of original purchase price) makes you indifferent between the two?
Questions: A. Build a 5-year pro forma cash flow statement for the lease case and determine its NPV.
- Build a 5-year pro forma cash flow statement for the buy case and determine its NPV.
- What salvage value (to the nearest tenth of a percent or xx.x% of original purchase price) makes you indifferent between the two?