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PLease answer this asap Smith Inc. has identified several capital budgeting projects they would like to complete (positive NPV). One of the projects is the

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Smith Inc. has identified several capital budgeting projects they would like to complete (positive NPV). One of the projects is the purchase of a fleet of delivery vans at a cost of $810,000. Smith Inc's before tax cost of debt is 10% and their tax rate is 40%. They have approached TOK Leasing Inc to inquire about leasing the vans instead of purchasing. TOK Leasing Inc. has provided Smith Inc with the following proposal: - The present value of the annual lease payments would be $485,000. The lease is over 5 years with payments made at the beginning of the year. - If Smith Inc purchases the vans, they estimate the annual maintenance costs to be $40,000 per year. Under the terms of the lease, the lessor would be responsible for the annual maintenance costs, which are made at the end of each year. - The PVCCA Tax shield is $244,000. - The PV of the the salvage value is $100,000. The NAL (Net Advantage to Leasing) is $ (please use - sign if negative, not

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