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Pele Corp. is a professional leasing company. The leasing manager has to evaluate some lease agreements under the following conditions: The company's marginal federal-plus-province income
Pele Corp. is a professional leasing company. The leasing manager has to evaluate some lease agreements under the following conditions: The company's marginal federal-plus-province income tax rate is 30%. The company has alternative investment options of similar risk that yield 8.50%. Assuming all other factors and values are constant among these leases, from the lessor's perspective, which of the following is the best lease? A lease that has an MIRR of 5.15%. O A lease that generates an after-tax rate of return of 5.45%. A lease that has an NPV of - $81,000. O Alease that has an IRR of 6.75%. Based on your understanding of lease contracts, which type of lease cash flow has the most uncertainty? O Tax savings Loan payments Lease payments
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