An asset costs $950,000 and will be depreciated in a straight-line manner over its four-year life....

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An asset costs $950,000 and will be depreciated in astraight-line manner over its four-year life. It will have nosalvage value. The corporate tax rate is 22 percent and theappropriate interest rate is 8 percent.

a.
What would the lease payment have to be to make both the lessorand lessee indifferent about the lease? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
b. Assume that the lessee pays no taxes and the lessor pays taxes.For what range of lease payments does the lease have a positive NPVfor both parties? (Enter your answers from lowest tohighest. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)

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An asset costs $950,000 and will be depreciated in astraight-line manner over its four-year life. It will have nosalvage value. The corporate tax rate is 22 percent and theappropriate interest rate is 8 percent. a.What would the lease payment have to be to make both the lessorand lessee indifferent about the lease? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)b.Assume that the lessee pays no taxes and the lessor pays taxes.For what range of lease payments does the lease have a positive NPVfor both parties? (Enter your answers from lowest tohighest. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)

a.	What would the lease payment have to be to make both the lessorand lessee indifferent about the lease? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
b.	Assume that the lessee pays no taxes and the lessor pays taxes.For what range of lease payments does the lease have a positive NPVfor both parties? (Enter your answers from lowest tohighest. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)