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Booth Corporation is considering a minicomputer that can be leased for $2,000 a year for 5 years. The companys marginal tax rate is 35 percent

Booth Corporation is considering a minicomputer that can be leased for $2,000 a year for 5 years. The companys marginal tax rate is 35 percent and the yield to maturity on the companys debt is 9.23 percent. Compute the cost to lease if lease payments and associated tax savings are at the beginning of each year.

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