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Wheat Chex leases a thresher from John Deere. The cost of the thresher is $2,000,000. The lease will last for two years. The company uses

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Wheat Chex leases a thresher from John Deere. The cost of the thresher is $2,000,000. The lease will last for two years. The company uses straight line depreciation over five years to depreciate the equipment. The estimated salvage value is $1,500,000. The corporate tax ratefc both firms is 40%. The cost of borrowing is 10% and the required rate of return is 15%. Assume you are John Deere: Round to the nearest dollar. What is the after-tax salvage value? What is the present value of the after-tax salvage value? If the present value of the other non-SV cashflows is $1,000,000, what is the NAL of the lease

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