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A firm is considering the purchase of a new equipment costing $5,118,915 which qualifies for a 28% CCA rate. This equipment has a 4-year life

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A firm is considering the purchase of a new equipment costing $5,118,915 which qualifies for a 28% CCA rate. This equipment has a 4-year life after which it will be worthless. The firm can lease it for $1,555,980 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 30%, and the pre-tax cost of borrowing is 7.78%. What would the lease payment have to be for both the lessor and lessee to be indifferent to the lease? $1,416,492 $1,455,839 $1,495,186 $1,534,533 $1,573,880

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