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Al-Tek is considering leasing some new equipment for 5 yearswith annual payments. The equipment would cost $115,000 to buy andwould be depreciated straightline to a zero salvage value. Theactual salvage value is zero. The applicable pretax borrowing rateis 8 percent. The lessee does not expect to owe taxes for severalyears. The lessor's tax rate is 21 percent. What is the minimumlease payment that will be acceptable to both parties? MultipleChoice $28,745.16 $26,709.12 $22,708.67 $27,750.00
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