Incremental Analysis Approach What is the advantage of leasing, if any? Time Initial A-tax DTS NCF DCF Present Period Cost LP Foregone ( @7%)Value Avoided 180000 180000 180000 01234 35000-13500-485000.935-45348 35000-13500-485000.873-42341 -35000-13500-485000.816-39576 -35000-13500-485000763-37006 NP=S15729 Conclusion: NPv>0. lease. The naL is s15 729Incremental Analysis Approach Time Period Initial Cost Avoided A-tax LP DTS Foregone NCF DCF (@ 7%) Present Value 0 180 000 180 000 1 180 000 1 -35 000 -13 500 -48 500 0.935 -45 348 2 -35 000 -13 500 -48 500 0.873 -42 341 3 -35 000 -13 500 -48 500 0.816 -39 576 4 -35 000 -13 500 -48 500 0.763 -37 006 NPV = $15 729 What is the advantage of leasing, if any? Conclusion: NPV > 0, lease. The NAL is $15 729