1. Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 ban

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answerhappygod
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1. Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 ban

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1. Sutton Corporation, which has a zero tax rate due to tax loss
carry-forwards, is considering a 5-year, $6,000,000 bank loan to
finance service equipment. The loan has an interest rate of 10% and
would be amortized over 5 years, with 5 end-of-year payments.
Sutton can also lease the equipment for 5 end-of-year payments of
$1,790,000 each. How much larger or smaller is the bank loan
payment than the lease payment?
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