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1. The machinery falls into the MACRS 3-year class. 2. Under either the lease or the purchase, Big Sky must pay for insurance, property taxes,

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1. The machinery falls into the MACRS 3-year class. 2. Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and maintenance. 3 . The firm's tax rate is 35%. 4. The loan would have an interest rate of 10%. It would be nonamortizing, with only interest paid at the end of each year for four year and the principal repaid at 5. The lease terms call for $400,000 payments at the end of each of the next 4 years. 6. Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of $200,000 at the end of What is the NAL of the lease? Do not round intermediate calculations. Round your answer to the nearest dollar. $

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