стр. 101 
Find the aftertax cash outflows.
2.
3. Find the present value of the aftertax cash outflows.
When considering a purchase, take the following steps:
Find the annual loan amortization by using:
amount of loan for the purchase
A=
PVIFAi,,
This step may not be necessary since this amount is usually available.
Calculate the interest. The interest is segregated from the principal in each of the annual loan
payments because only the interest is taxdeductible.
Find the cash outflows by adding interest and depreciation (plus any maintenance costs), and
then compute the aftertax outflows.
Find the present value of the aftertax cash outflows, using Appendix C.
EXAMPLE 8.12 A firm has decided to acquire an asset costing $lOO,OOO that has an expected life of 5 years, after
which the asset is not expected to have any residual value. The asset can be purchased by borrowing or it can be
leased. If leasing is used, the lessor requires a 12 percent return. As is customary, lease payments are to be made
in advance, that is, at the end of the year prior to each of the 10years. The tax rate is 50 percent and the firm's cost
of capital, or aftertax cost of borrowing, is 8 percent.
First compute the present value of the aftertax cash outflows associated with the leasing alternative.
1. Find the annual lease payment:
amount of lease
A=
1 + PVIFAi,nI
  $l00,OOo
$100,000  $100,OOo =
 $23,216 (rounded)
1+ PVIFA12%,4years1+ 3.3073 4.3073
Steps 2 and 3 can be done in the same schedule, as follows:
(5) =(3) x (4)
(3) =(1) (2)
(2) (4)
(1)
PV of Cash Oufflow
Tax
Lease AfterTax PV
Cash Outflow ($)
Year Payment ($) at 8% ($, Rounded)
Savings ($)
23,216 23,216 1.0oo 23,216
0
14 23,216 11,608" 11,608 3.3121b 38,447
5 11,608 (11,608) 0.6806' (7,900)
53,763
$23,216X 50%
a
From Appendix D.
CFromAppendix C.
If the asset is purchased, the firm is assumed to finance it entirely with a 10 percent unsecured term
loan. Straightlinedepreciation is used with no salvagevalue. Therefore, the annual depreciation is $20,000
($100,000/5 years). In this alternative, first find the annual loan payment by using:
amount of loan
A=
PVIFAi,n
217
CAPITAL BUDGETING (INCLUDING LEASING)
CHAP. 81
2. Calculate the interest by setting up a loan amortization schedule.
 (4)
(5) = (2)
(2)
(1)
 (3)
(4) = (1)
(3) = (2)(10%) EndofYear
BeginningofYear
Loan
Principal ($)
Payment ($1 Prinapal($)
Year Interest ($) Principal ($)
83,619
10,000 16,381
100,000
26,381
1
65,600
8,362 18,019
83,619
2 26,381
45,779
6,560 19,821
65,600
3 26,381
23,976
4,578 21,803
45,779
4 26,381
2,398 23,983"
23,976'
5 26,381
uBecause of rounding errors, there is a slight difference between (2) and (4).
Steps 3 (cash outflows) and 4 (present values of those outflows) can be done as follows:
(8) = (6) x (7)
(4) = (2) + (3) (6) = (1) (5)
(5)= (4)(50%)
(1)
PV of Cash
0
TX
n
(2) (3) Total
hall Cpsh
Ya
er Savings ($1 Outflow ($) PV at 8% outllow ($)
Interest ($) Depreciation ($) Deductions ($)
h y m e n t ($)
0.9259
u),000 11,381 10,538
15,000
26,381
1 10,000 20,000
0.8573 10,459
12,200
14,181
8,362 20,000 28,362
2 26,381
0.7938
13,101
13,280 10,400
6,560 20,000 26,560
3 26,381
0.7350
14,092 10,358
12,289
4,578 20,000 24,578
4 26,381
0.6806 10,333
15,182
11,199
2,398 20,000 22,398
26.381
5

52,088
стр. 101 