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Question 1 An asset costs $420,000 and will be depreciated in a straight-line manner over its 3-year life. It will have no salvage value. The

Question 1

An asset costs $420,000 and will be depreciated in a straight-line manner over its 3-year life. It will have no salvage value. The corporate tax rate is 32 percent, and the cost of borrowing is 8 percent. What lease payment amount will make the lessee and the lessor equally well off?

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