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A firm borrows money at 8 . 7 5 percent, uses straight - line depreciation, and has a 4 0 percent tax rate. The firm's

A firm borrows money at 8.75 percent, uses straight-line depreciation, and has a 40 percent tax rate. The firm's break-even after-tax annual lease payment on a machine is 16,500. How much will the firm have to pay annually to the lessor to lease this machine?

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