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ASB is considering leasing a new machine. The lease calls for 9 payments of $1,783 per year with the first payment occurring immediately. The machine

ASB is considering leasing a new machine. The lease calls for 9 payments of $1,783 per year with the first payment occurring immediately. The machine costs $8,297 to buy. The present value of CCA tax shield is $1,439. The present value of its salvage value is $465 and the present value of the tax on CCA recapture is $61. ASB firm can borrow at a rate of 10%. The corporate tax rate is 36%. What is ASB's NPV of leasing?

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