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calculate the implicit interest rate (IRR) of a computer lease. The computers cost $30,000 at the start and pay a yearly lease of $12,000 for
calculate the implicit interest rate (IRR) of a computer lease. The computers cost $30,000 at the start and pay a yearly lease of $12,000 for years 1-3. The salvage value is $1,000 at the end of year 4. Explain your answer in the box provided. If the firm can borrow at 8.5% from the bank, should it borrow from the bank or lease?
Year Year2 Year 3 Salvage Start Lease Cash Flows IRRStep by Step Solution
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