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Montclair Manufacturing is considering leasing some eqipment. The annual lease payment would be $975,000 per year for eight years. The appropriate interest rate is 7

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Montclair Manufacturing is considering leasing some eqipment. The annual lease payment would be $975,000 per year for eight years. The appropriate interest rate is 7 percent and the company is in the 25 percent tax bracket. What reduction in debt capacity would occur if the company signs the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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