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Make the incremental cash flows for the option to buy it for cash and lease it, the option to buy it on credit and lease
Make the incremental cash flows for the option to buy it for cash and lease it, the option to buy it on credit and lease it, and determine the best option, consider a depreciation rate of 25% per year, a salvage value at the end of the 4 years of 30% of the value of the unit and a tax rate of 32%, take into account that the lease payments are tax deductible. Consider an opportunity rate of 14%.
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