Your firm is considering leasing a new computer. The lease lasts for 4 years. The lease calls for 5 payments of $450 per

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answerhappygod
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Your firm is considering leasing a new computer. The lease lasts for 4 years. The lease calls for 5 payments of $450 per

Post by answerhappygod »

Your firm is considering leasing a
new computer. The lease lasts for 4 years. The lease calls for 5
payments of $450 per year with the first payment occurring
immediately. The computer would cost $5,900 to buy and would be
depreciated using the straight-line method to zero salvage over 4
years. The firm can borrow at a rate of 7%. The corporate tax rate
is 21%. What is the NPV of the lease?
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