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6 pts If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease out the machine for 9
6 pts
If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease out the machine for 9 years with lease payments at the beginning of the year, how much should the minimum annual lease payments be? Assume a 5-year straight-line depreciation, zero salvage and a tax rate of 35%. Assume further that it can borrow at a before tax rate of 7%. $8,300 $9,600 O $8.900 O $9,300 $10,300Step by Step Solution
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