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An asset costs $ 6 8 8 , 0 0 0 . The CCA rate for this asset is 2 7 % . The asset

An asset costs $688,000. The CCA rate for this asset is 27%. The assets useful life is two years after which it will be worth $56,500. The corporate tax rate on ordinary income is 37%. The interest rate on risk-free cash flows is 10%. Assume payments are made at the end of the year.
a. What set of lease payments will make the lessee and the lessor equally well off, assuming payments are made at the end of the year?

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