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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