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When looking at Project A you are trying to decide if you should lease or buy a building. You run the numbers and find that
When looking at Project A you are trying to decide if you should lease or buy a building. You run the numbers and find that the cost to lease this building is negative $2,500,000. In the calculations for the cost to lease, you project the if the residual or disposal value is $800,000. If the residual value or disposal value is modeled at $1.200,000 instead of the original $800,000 would this increase or decrease the cost to lease this building? Explain.
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