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Question 2 ( 3 points ) Consider a firm, A that wishes to acquire an equipment. The equipment is expected to reduce costs by $

Question 2(3 points)
Consider a firm, A that wishes to acquire an equipment. The equipment is expected to reduce costs by $3800 per year. The equipment costs $29000 and has a useful life of 7 years. If the firm buys the equipment, they will depreciate it straight-line to zero over 7 years and dispose of it for nothing. They can lease it for 7 years with an annual lease payment of $8000. If the after-tax interest rate on secured debt issued by company A is 2% and tax rate is 35%, what is the Net Advantage to Leasing (NAL)?(keep two decimal places)
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