Chpt021 Leasing -公司理财(罗斯).ppt

Appendix 21A: APV Approach to Leasing APV = All-Equity Value + Financing NPV The NPV of the financing is the forgone interest tax shields on the debt that ClumZee movers didn’t go into when they leased instead of bought the truck. ClumZee agreed to a lease payment of $5,900. This payment would support a loan of $25,543.91 Appendix 21A: APV Approach to Leasing The lost interest tax shield associated with this additional debt capacity of $25,543.91 has a present value of $1,135.30 21.7 Debt Displacement and Lease Valuation The lost interest tax shield associated with this additional debt capacity of $25,219.20 has a present value of $ Appendix 21A: APV Approach to Leasing APV = All-Equity Value + Financing NPV Calculations shown on the following slides will show that for the latest Clumzee Movers example (where the tax rate is 25%) APV = $591.38 – $1,135.30 APV = –$543.91 Which is the same value as the easier NPV analysis. Appendix 21A: APV Approach to Leasing APV = All-Equity Value + Financing NPV To find the all-equity value, discount the cash flows at the pre-tax interest rate. The after tax rate was 5% which implies a pretax rate of 6.66% = 5%/(1-.25). Cash Flows ClumZee Movers: Leasing Instead of Buying Year 0 Years 1-5 Cost of truck we didn’t buy $25,000 Lost Depreciation Tax Shield 5,000×(.25) = –$1,250 After-Tax Lease Payments 6,200×(1 –.25) = –$4,650 $25,000 –$5,900 Appendix 21A: APV Approach to Leasing APV = All-Equity Value + Financing NPV The NPV of the financing is the forgone interest tax shields on the debt that ClumZee movers didn’t go into when they leased instead of bought the truck. ClumZee agreed to a lease payment of $5,900. This payment would support a loan of $25,543.91 Appendix 21A: APV Approach to Leasing The lost interest tax shield associated with this additional debt capacity of $25,543.91 has a present value of $1,135.30 * This material is kind of optional. Most students are happy to use the after tax rate on secured d