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If a firm can buy a machine for $90000, takes an investment tax credit of 30%, and lease out the machine for 9 years with
If a firm can buy a machine for $90000, takes an investment tax credit of 30%, 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 6-year straight-line depreciation, $13500 salvage and a tax rate of 25%. Assume further that it can borrow at a before tax rate of 7%. Group of answer choices $7,200 $6,400 $7,800 $7,300 $6,800
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