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EagleC Inc. is considering buying a machine that costs $600,000. The machine will be depreciated over five (5) years by the straight-line method and will

EagleC Inc. is considering buying a machine that costs $600,000. The machine will be depreciated over five (5) 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 35 percent. What is the NAL of the lease?

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A. -$637

B. $43,017

C. $180,200

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