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Assume you are deciding between the outright purchase of a machine with an expected five-year life for $39,000 and a five-year lease of the asset

Assume you are deciding between the outright purchase of a machine with an expected five-year life for $39,000 and a five-year lease of the asset for a net cost of $8,990 per year with payments made at the beginning of each year. What is the implied cost of financing associated with undertaking the lease? Please present your answer as a percentage, rounded to two decimal places (e.g., 3.45%).

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