Question: CBU Computers plans to either lease or purchase a machine that costs 265,000 . The required lease payments are $22,000 at the beginning of each

CBU Computers plans to either lease or purchase a machine that costs 265,000. The required lease payments are $22,000 at the beginning of each of four years. The firm's before-tax borrowing rate is 7%, WACC is 9% and its effective tax rate is 40%. What is the present value of the after tax lease payments?

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