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If the after-tax present value of buying equipment and using it for six years is $100,000, calculate the break-even after-tax yearly lease payment (seven payments)
If the after-tax present value of buying equipment and using it for six years is $100,000, calculate the break-even after-tax yearly lease payment (seven payments) using a 7% real discount rate. (Assume that lease payments are made at the beginning of the year and zero inflation.) Correct Answer: $17,341. Please show the formula & explain your calculations. No financial calculator route.
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