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Reynolds Imaging needs a piece of diagnostic equipment that costs $ 2 0 0 , 0 0 0 . Reynolds can either 'lease the equipment
Reynolds Imaging needs a piece of diagnostic equipment that costs $ Reynolds can either 'lease the equipment or borrow $ from a local bank and buy the equipment. Reynolds's tax rate is percent, and the equipment depreciation would be $ per year. If the company leased the asset on a twoyear lease, the payment would be $ at the beginning of each year. If Reynolds borrowed and bought, the bank would 'charge percent interest on the loan. Should Reynolds buy or lease the equipment? Why?
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