The company would like to buy a machine for 20 mil. USD. Machine would be depreciated for 3 years using 3-years MACRS method. Company has following options:
Loan: maturity 3 years, monthly payment, interest 6 % p.a., equal annuity payment
Leasing: leasing coefficient 1.3; advanced payment 30 %; maturity 3 years; monthly payment Corporate tax rate is 19 %.
Which type of financing is better for us?