Question: An asset costs $ 9 7 0 , 0 0 0 and will be depreciated in a straight - line manner over its three -
An asset costs $ and will be depreciated in a straightline manner over its threeyear life. It will have no salvage value. The corporate tax rate is percent and the appropriate interest rate is percent.
a
What would the lease payment have to be to make both the lessor and lessee indifferent about the lease? Do not round intermediate calculations and round your answer to decimal places, eg
b Assume that the lessee pays no taxes and the lessor pays taxes. For what range of lease payments does the lease have a positive NPV for both parties? Enter your answers from lowest to highest. Do not round intermediate calculations and round your answers to decimal places, eg
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