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If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease out the machine for 9 years wit
Posted: Thu May 19, 2022 12:10 am
by answerhappygod
- If A Firm Can Buy A Machine For 80000 Takes An Investment Tax Credit Of 15 And Lease Out The Machine For 9 Years Wit 1 (42.84 KiB) Viewed 34 times
If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease out the machine for 9 years with lease payments at the beginning of the year, how much should the minimum annual lease payments be? Assume a 5-year straight-line depreciation, $26400 salvage and a tax rate of 35%. Assume further that it can borrow at a before tax rate of 7%. $6,500 $6,800 $6,100 $7,600 $7.100