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EagleB Inc. is considering buying a machine that costs $600,000. The machine will be depreciated over three (3) years by the straight-line method and will

EagleB Inc. is considering buying a machine that costs $600,000. The machine will be depreciated over three (3) years by the straight-line method and will be worthless at that time. The company can lease the machine with year-end payments of $150,000. The company can issue bonds at an interest rate of 8 percent. The corporate tax rate is 25 percent. What is the NAL of the lease?

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A. $181,222

B. $165,636

C. $299,286

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