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Class, Rocky Dog Toy Co. intends to lease a machine from Riley Leasing, Inc. Rocky's incremental borrowing rate is 14%. The prime rate of interest

Class, Rocky Dog Toy Co. intends to lease a machine from Riley Leasing, Inc. Rocky's incremental borrowing rate is 14%. The prime rate of interest is 8%. Riley's implicit rate in the lease is 10%, which is known to Rocky. Rocky computes the present value of the lease payments using A. 8% B. 10% C. 12% D. 14%

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