Witten Entertainment is considering buying a machine that costs $548,000. The machine will be depreciated over...
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Witten Entertainment is considering buying a machine that costs$548,000. The machine will be depreciated over five years by thestraight-line method and will be worthless at that time. Thecompany can lease the machine with year-end payments of $143,000.The company can issue bonds at an interest rate of 8 percent. Thecorporate tax rate is 23 percent.
What is the NAL of the lease?
Witten Entertainment is considering buying a machine that costs$548,000. The machine will be depreciated over five years by thestraight-line method and will be worthless at that time. Thecompany can lease the machine with year-end payments of $143,000.The company can issue bonds at an interest rate of 8 percent. Thecorporate tax rate is 23 percent. |
What is the NAL of the lease? |
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