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Eli Lilly and Company: Globalization, Fo...

Eades, Kenneth M.,...

Case

Eli Lilly and Company: Globalization, Foreign Tax Credits, and Equipment Leasing

Eades, Kenneth M.; Posell, Jordan

F-1008 | Published July 5, 1992 | 13 pages Case

Collection: Darden School of Business

Product Details

Eli Lilly's Worldwide Treasury organization is integrating the effects of foreign tax credits into its lease-versus-purchase analysis for new equipment. The case serves as a review of discounted-cash-flow analysis for operating leases as well as an introduction to the effects of foreign tax credits on an international corporation's overall tax payments. The student must adapt a spreadsheet by allocating leasing, depreciation, and interest expenses to compute their effect on Lilly's excess foreign tax credits and its overall tax liability.

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