The ABC company needs a 2 year equipment. The equipment has zero salvage value and zero...
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The ABC company needs a 2 year equipment. The equipment has zero salvage value and zero book value after 2 years. ABC's tax rate is 40%. ABC plans to lease the equipment under a guideline lease for 2 years for a payment of $120 million at the end of each year. Discount rate is 5%. What is the cost of leasing? The ABC company needs a 2 year equipment. The equipment has zero salvage value and zero book value after 2 years. ABC's tax rate is 40%. ABC plans to lease the equipment under a guideline lease for 2 years for a payment of $120 million at the end of each year. Discount rate is 5%. What is the cost of leasing?
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