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Monster Magnet Manufacturing is considering leasing some equipment. The annual lease payment would be $465,000 per year for 6 years. The appropriate interest rate is
Monster Magnet Manufacturing is considering leasing some equipment. The annual lease payment would be $465,000 per year for 6 years. The appropriate interest rate is 8 percent and the company is in the 38 percent tax bracket. |
What reduction in debt capacity would occur if the company signs the lease? |
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