Riverbend Telephone Company
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Title: Riverbend Telephone Company

Essay Details:

Subject: Business
Author:
Date: June 12, 2016
Level: University
Grade: B
Length: 2 / 557

Essay text:

This comparison illustrates a net advantage to buying the truck: There are not many advantages to leasing the vehicle, since Reliable does not cover the cost of maintenance or registration and taxes. They only cover the cost of tires, a minimal expense, which does not offset the cost advantages of buying the vehicle. The company does not seem concerned with their debt ratios or the threat of default. The main advantage to buying the vehicle, aside from the better price is the depreciation tax shield, which subtracts annual $1800 from the costs of ownership. There are tax advantages to leasing, as the lease payments are a tax deductible expense, but that tax savings amounts to $2,880/ year...

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