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Q 4 . WellyWeta workshop is considering buying a machine that costs $ 5 4 5 , 0 0 0 . The machine will be
Q WellyWeta workshop is considering buying a machine that costs $ The machine will be
depreciated over five years by the straightline method and will be worthless at that time. The
company can lease the machine with yearend payments of $ The company can issue bonds
at an interest rate of percent. If the corporate tax rate is percent, should the company buy or
lease? marks
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