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If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease out the machine for 9 years with

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If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease out the machine for 9 years with lease payments at the beginning of the year, how much should the minimum annual lease payments be? Assume a 5-year straight-line depreciation, $26400 salvage and a tax rate of 35%. Assume further that it can borrow at a before tax rate of 7%. $6,500 $6,800 $6,100 $7,600 $7.100

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