A leasing company recently acquired a new filming equipment set for $500,000. A film maker wishes to
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A leasing company recently acquired a new filming equipment set for $500,000. A film maker wishes to lease the equipment set for six years. The set can be depreciated on a straight-line basis over five years. Assume the set has zero salvage value at the end of five years. The leasing company faces a tax rate of 35%, and the before-tax cost of capital is 10%.
What is the minimum lease payment the leasing company would accept? (8 Marks)
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Answer rating: 100% (QA)
Clipboard Font Alignment Number E021 EG El EJ EK EL EM EN 1 Year ... View the full answer
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