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Oatly Inc. is considering leasing a machine. Expected life is 4 years and residual value is $15,000. Annual lease payments are $16,500 payable in advance.
Oatly Inc. is considering leasing a machine. Expected life is 4 years and residual value is $15,000. Annual lease payments are $16,500 payable in advance. The companys tax rate is 35%, and before-tax cost of borrowing is 12%. What is the annual lease payment tax shield?
Group of answer choices
(a) $14,520
(b) $5,775
(c) $5,250
(d) $1,980
(e) Need more information
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