Lease Problem

if the salvage value is more/less than WDV of that asset in the 8th year then there will be either CAPITAL GAIN (in case salvage value is more than WDV of asset) or Tax Saving on CAPITAL LOSS (in case salvage value is less than WDV of the asset)..

IF SALVAGE VALUE is equal to (=) WDV of the asset than u have to take salvage value directly without deducting any tax as there will be no profit/loss (cost=sale price)...

hope this helps,

Rgds,

G9!

Please help me with regard to the November 2007 leasing problem.

I dont understand when to take which discounting factor !!!

Sometimes cost of capital is taken and sometimes interest rate after tax is taken?

HELP !!

provide the question here