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XYZ is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years.
XYZ is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years. At the end of four years they will be worthless. The corporate tax rate is 34%. The cars belong in CCA class 10 (a 30% class). What is the break-even lease payment? A. $35,675 B. $47,328 C. $55,000 D. $57,128 E. $56,488
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
