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Redwood Inc. is trying to decide, whether to lease or to buy construction machinery. The lease lasts for 7 years, with $ 1 0 ,

Redwood Inc. is trying to decide, whether to lease or to buy construction machinery. The lease lasts for 7 years, with $10,000 annual payments due at the end of each year. The company can borrow at 10% and has a 40% marginal tax rate. Your colleague already calculated the NPV of the cost of buying the equipment; it is equal to $33,011.42. What is the companys net advantage of leasing this equipment (in $)? Choose the closest number below.
a.
-482.87
b.
10,681.90
c.
33,011.42
d.
-6,065.25
e.
5,099.52

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