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5) For the next two years, a lease is estimated to have an operating net cash inflow of $7,500 per annum, before adjusting for
5) For the next two years, a lease is estimated to have an operating net cash inflow of $7,500 per annum, before adjusting for $5,000 per annum tax-basis lease amortization, and a 40% tax rate. The present value of an ordinary annuity of $1 per year at 10% for 2 years is $1.74. What is the lease's after-tax present value using a 10% discount factor? a) $2,610 b) $4,350 c) $9,570 d) $11,310
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