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A 21%-tax bracket firm (Lessee) is considering the use, for two years, of a truck that costs $100,000 today. This firm can buy the asset
A 21\%-tax bracket firm (Lessee) is considering the use, for two years, of a truck that costs $100,000 today. This firm can buy the asset or lease it from another 21%-tax bracket firm (Lessor) in exchange for $40,000 per year, with the first payment due at the time of signing. What is the Lessee's Time 0 incremental cash flow of buying the asset instead of leasing it? (Do not round your intermediate calculations. Round only your final answer up to 2 decimal places. Note: Your final answer must be in dollars without the $ sign at the beginning)
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