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ABC company has decided to lease a machine to firm D (price of the machine is 30000) for a period of 5 years. You are

ABC company has decided to lease a machine to firm D (price of the machine is 30000) for a

period of 5 years. You are tasked with evaluating the incremental cash flows from leasing the

machine in lieu of buying it

While doing the evaluation assume the tax rate to be 34%,Assume 7500 to be the monthly

leasing payment. Kindly evaluate whether leasing or buying decision would be appropriate?

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