A machine with a four-year useful life could be purchased for 50,000. It would have zero residual

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A machine with a four-year useful life could be purchased for £50,000. It would have zero residual value at the end of the four years. Alternatively, the machine could be rented at £15,180 per annum for four years. Assuming a tax rate of 30% and that tax relief is obtained in the same period as the payments, what is the implicit interest rate in the lease?

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Frank Woods Business Accounting Volume 2

ISBN: 9780273767923

12th Edition

Authors: Frank Wood, Ph.D. Sangster, Alan

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