Leasing example a Purchase price $180 000 a Depreciation - straightline to zero Annual lease payments $50 000 Before-tax cost of debt 10%o pa Life(and lease period)4 years ■ Tax rate3000Leasing Example ◼ Purchase price $180 000 ◼ Depreciation - straightline to zero ◼ Annual lease payments $50 000 ◼ Before-tax cost of debt 10% p.a. ◼ Life (and lease period) 4 years ◼ Tax rate 30%