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ASB is considering leasing a new machine. The lease calls for 8 payments of $ 1 , 6 4 2 per year with the first

ASB is considering leasing a new machine. The lease calls for 8 payments of $1,642 per year with the first payment occurring immediately. The machine costs $8,551 to buy. The present value of CCA tax shield is $1,482. The present value of its salvage value is $457 and the present value of the tax on CCA recapture is $89. ASB firm can borrow at a rate of 11%. The corporate tax rate is 32%. What is ASB's NPV of leasing?

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