Question: CBA Inc. needs to replace its rawhide tanning and molding equipment. It can be used for 5 years and will have no salvage value. The

CBA Inc. needs to replace its rawhide tanning and molding equipment. It can be used for 5 years and will have no salvage value. The equipment costs $930,000. CBA can lease it for $245,000 a year (beginning-of-year lease payments), or it can borrow the money to purchase the equipment at 9%. CBA has a tax rate of 39%. Using the straight-line depreciation to a salvage value of zero, what is the net advantage to leasing? Question 14 options: -$53,267 $152,062 -$79,102 $136,269 $138,706

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