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answer fast The Deacon Co. is a pharmaceutical firm that has decided to acquire a new line of centrifuges to improve its production process. They
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The Deacon Co. is a pharmaceutical firm that has decided to acquire a new line of centrifuges to improve its production process. They are now trying to determine whether to purchase or lease the centrifuges. These machines cost $48,000 and have a useful operating life of four years. If they purchase the centrifuges they will be depreciated over their four-year life by the straight-line method. The Deacon Co. pays taxes at a rate of 21% under the TCJA and their before tax borrowing cost is 6%. Based on this information what is the breakeven lease payment below which it is economical for The Deacon Co. to lease the centrifuges? $13,841.65 $13,454.91 $12,688.18 $14.995.13 $10,934.91 Step by Step Solution
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