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4. Assume that there is a 40% marginal tax rate. An asset with a life of 3 years can be bought for $25,313 or leased
4. Assume that there is a 40% marginal tax rate. An asset with a life of 3 years can be bought for $25,313 or leased for $10,000 per year. Funds can be borrowed at cost of 0.09 (payments of $10,000 per year).
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