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ABC, Inc. needs some new equipment. The equipment would cost $200,000 if purchased and would be depreciated straight-line over 4 years. No salvage is
ABC, Inc. needs some new equipment. The equipment would cost $200,000 if purchased and would be depreciated straight-line over 4 years. No salvage is expected. Alternatively, the company can lease the equipment for $42,000 per year. The marginal tax rate is 35%. a) What are the incremental cash flows? (15 points)
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