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Kaneohe Canned Meats needs to replace an old piece of equipment and is conducting a lease or sell differential analysis. Costs of leasing the machine

Kaneohe Canned Meats needs to replace an old piece of equipment and is conducting a lease or sell differential analysis. Costs of leasing the machine to a third party are: Estimated Repair Expense $26,000, Estimated Insurance Expense $8,000 and Estimated Property Tax Expense of $4,000. The salvage value of the machinery after the lease will be $0.00. Kaneohe can sell the old equipment for $40,000 minus a commission of 6%. How much could Kaneohe lease the machine for, to earn a profit of exactly $25,000?

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