Morris Seeding and Tillage Australia – McIntosh Distribution

Morris-Meyer Mining Company must install 1.5 million of new machinery in its Nevada mine. It can obtain a bank loan for 100 percent of the required amount. Alternatively, a Nevada investment banking firm that represents a group of investors believes that it can arrange for a lease financing plan. Assume that the following facts apply: (1) The equipment falls in the MACRS 3 -year class. The applicable MACRS rates are 33 , 45,15, and 7 percent. (2) Estimated maintenance expenses are 75,000 per y