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Smith corporation has decided to acquire $10M of new equipment for its data center. Smith can either purchase the equipment or lease it. Smith decides
Smith corporation has decided to acquire $10M of new equipment for its data center. Smith can either purchase the equipment or lease it. Smith decides to conduct a lease buy analysis. Of the choices below, what would be the best rate to discount cash flows from each alternative?
Group of answer choices
After tax cost of equity
LIBOR
WACC
After tax cost of debt of the company
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