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Tom is analyzing whether it is financially better to buy or lease a machine. In computing the cash flows of the borrow-to-buy scenario, he included
Tom is analyzing whether it is financially better to buy or lease a machine. In computing the cash flows of the "borrow-to-buy" scenario, he included interest expenses associated with the loan to buy the machine. The bank charges Tom a 10% interest rate for the loan. Marginal tax rate is 20%. What is the appropriate discount rate for those cash flows?
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