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A large corporation hires you as a consultant. The firm has accumulated tax losses, and it expects to be in this position for a number

A large corporation hires you as a consultant. The firm has accumulated tax losses, and it expects to be in this position for a number of years. The firm needs a new distribution facility on the West Coast to service its customers there more efficiently. The facility has an estimated cost of $10 million. The firm is considering there alternative plans. Under plan A, the firm can borrow the $10million and purchase the facility, under plan B the firm can issue common stock to raise 10million and purchase facility, under plan C, the firm can lease the facility from the current owners. The firm asks you to prepare a brief report outlining the tax consequences of each plan. Your report should also contain your recommendation as to the most tax efficient plan

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