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Net advantage to Leasing A company has to replace some assets. New assets will cost $930,000 and have an expected useful life of 5 years,

Net advantage to Leasing

A company has to replace some assets. New assets will cost $930,000 and have an expected useful life of 5 years, with no salvage value. They can lease the assets for $245,000 a year, or borrow the money to purchase the assets at 9%. The company's tax rate is 39%. The CCA rate is 20%. What is the net advantage to leasing?

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