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Question 1. Stuart wishes to obtain new assets that will reduce their operating costs by $5,000 per year on an after-tax basis. These assets can

Question 1. Stuart wishes to obtain new assets that will reduce their operating costs by $5,000 per year on an after-tax basis. These assets can be either purchased or leased. Explain why these cost savings are omitted from the lease versus purchase analysis. (3 marks)

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