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A company is deciding whether to lease or buy new equipment. The equipment can be purchased for $50,000 or leased for a 6-year period for
A company is deciding whether to lease or buy new equipment. The equipment can be purchased for $50,000 or leased for a 6-year period for $11,500 per year (due at the beginning of each year). The firm can borrow at a rate of 10%. The equipment has a CCA rate of 22%. The company's marginal tax rate is 32%. Calculate the Net Advantage of Lease (NAL).
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