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An asset costs $630,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The lessor can
An asset costs $630,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The lessor can borrow at 6 percent and the lessee can borrow at 9 percent. The corporate tax rate is 21percent for both companies.
a.What lease payment will make the lessee and the lessor equally well off?(Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)
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