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A company is considering acquiring an asset through either lease or purchase for its investment project. The lease has a term of 8 years with

A company is considering acquiring an asset through either lease or purchase for its investment project. The lease has a term of 8 years with annual payments of $48,000. The asset would cost $330,000 to buy and would be depreciated straight-line to a zero salvage value over 8 years. The actual salvage value is zero. If the company has a tax rate of 32 percent, what is the incremental cash flow in Year 8 of leasing rather than purchasing? -$45,892 -$45,840 -$45,789 -$45,737 -$45,686

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