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A G H O E Please do not use column A as I would like to use it to record ny marking Question 2 (10

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A G H O E Please do not use column A as I would like to use it to record ny marking Question 2 (10 marks) Bruins Rock Inc. (BRI) needs to expand its production capacity. In order to do so, BRI is going to acquire a machine and wants to know whether it should lease or purchase the machine. BRI as 32 tax rate The terms of the lease and the purchase options are as follows: Lease: The leasing arrangement has a five (5) year term and requires beginning of the year before tax payments of $ 16.900.00 10 12 Purchase: Cost of the machine S Before tax cost to finance Machine salvage at the end of 5 years CCA Rote 71.000.00 9.25% 12,000.00 16 Required: Which financing alternative do you recommend BRI go forward with and why? Make sure to provide calculations to support your answer. (7 marks) What are some important qualitative factors that should be considered in the lease vs buy decision

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