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Question 12 4 pts A company can either purchase or lease a $200,000 machine with a useful life of 8 years. The machine could be

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Question 12 4 pts A company can either purchase or lease a $200,000 machine with a useful life of 8 years. The machine could be fully depreciated on a straight-line basis over its useful life, at the end of which it would have no salvage value. The lease would involve 8 annual installments of $40,000, each due at the end of the year. The company's cost of debt is 10% and the tax rate is 20%. What is the expected increase in the firm's debt capacity if it chooses to buy instead of lease? $330,431.74 $212,625.64 $183,892.45 $197,392.27 $200,000.00

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