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An old photocopy machine of your company will be replaced with a new one, because it cannot be repaired. A new machine will cost $20.000.

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An old photocopy machine of your company will be replaced with a new one, because it cannot be repaired. A new machine will cost $20.000. Your cominany can borrow funds at 12% compounded quarterly over 2 years. Alternatively, it can afraage tease finance coniprising 8 payments of 53,000 starting immediately. No residual value is built into the coatract Suppose that the marginal corporate tax rate is 30% (tax payments are due cqarteriy with oac qparter delay). Calculate whether your company shouldwuy or lease the rhotocopy machine

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