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A Company has the option of borrowing $2.5 million through a 12 year loan with monthly payments based on a 7.5 percent lending rate, or
A Company has the option of borrowing $2.5 million through a 12 year loan with monthly payments based on a 7.5 percent lending rate, or entering into a 12 year, $2.5 million financial lease arrangement with monthly payments based on a 7.5 percent lease arrangement. Which option is more advantageous to the Company. Show your calculations
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