Maxwell, Inc., is entering negotiations for the lease of equipment that has a ($200,000) purchase price. Maxwells

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Maxwell, Inc., is entering negotiations for the lease of equipment that has a \($200,000\) purchase price. Maxwell’s effective tax rate is zero. Maxwell will be negotiating the lease with Mercer Leasing Corp. The term of the lease is five years. Mercer Leasing Corp. is in the 35-percent tax bracket. There are no transaction costs to the lease. Each firm can borrow at 10 percent. What is the negotiating range of the lease?

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