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An asset costs $ 9 7 0 , 0 0 0 and will be depreciated in a straight - line manner over its three -

An asset costs $
9
7
0
,
0
0
0
and will be depreciated in a straight
-
line manner over its three
-
year life. It will have no salvage value. The corporate tax rate is
2
4
percent and the appropriate interest rate is
6
percent.
a
.
What would the lease payment have to be to make both the lessor and lessee indifferent about the lease?
(
Do not round intermediate calculations and round your answer to
2
decimal places, e
.
g
.
,
3
2
.
1
6
.
)
b
.
Assume that the lessee pays no taxes and the lessor pays taxes. For what range of lease payments does the lease have a positive NPV for both parties?
(
Enter your answers from lowest to highest. Do not round intermediate calculations and round your answers to
2
decimal places, e
.
g
.
,
3
2
.
1
6
.
)

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