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A firm is considering the purchase of a new equipment costing $6,363,620 which qualifies for a 35% CCA rate. This equipment has a 4-year life

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A firm is considering the purchase of a new equipment costing $6,363,620 which qualifies for a 35% CCA rate. This equipment has a 4-year life after which it will be worthless. The firm can lease it for $1,934,330 per year for its useful life. Assume that the firm makes payments at the end of the year, the asset pool remains open, the tax rate is 37%, and the pre-tax cost of borrowing is 9.46%. What would the lease payment have to be for both the lessor and lessee to be indifferent to the lease? $2,017,483 $2,067,920 $2,118,357 $2,168,794 $2,219,232

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