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Please show work! 60. The Round Top is contemplating the acquisition of some new tents. The purchase price is $156,000. The CCA represents 33.33 percent,
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60. The Round Top is contemplating the acquisition of some new tents. The purchase price is $156,000. The CCA represents 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent of the value over years 1 to 4, respectively. The tents will be worthless after four years. The tents can be leased for four years at $40,500 a year. The firm can borrow money at 8.5 percent and has a 35 percent tax rate. What is the net advantage to leasing? A. $14.107 B. $14,470 C. $14,596 D. $15.211 E. $15,407Step by Step Solution
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