Question: Chappal, Co is leasing a machine for 3 years. The annual lease payments are $ 3 , 0 0 0 . The machine costs $

Chappal, Co is leasing a machine for 3 years. The annual lease payments are $3,000. The machine costs $8,000. The machine belongs to an asset class for CCA rate of 30%. Chappals marginal tax rate is 20%. What is the NAL of the machine if the after-tax cost of debt for the firm is 10%? Ignore salvage value.
Question 15 options:
- $128.89
$230.89
$417.29
$587.77
$635.25

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