Question: : Company X , whose tax rate = 2 0 % , is considering a lease of 9 years, which has regular yearly payments of

: Company X, whose tax rate =20%, is considering a lease of 9 years, which has regular yearly payments of $22,700(note: financing costs are $23,500 to buy). Assuming company Xs before-tax leasing rate =8% and the net worth of buying = $115,200, should company X lease the asset?

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