Dunbar Corporation can purchase an asset for $ 2 2 , 0 0 0 ; the asset
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Question:
Dunbar Corporation can purchase an asset for $; the asset will be worthless after years. Alternatively, it could lease the asset for years with an annual lease payment of $ paid at the end of each year. The firms cost of debt is The IRS classifies the lease as a nontaxoriented lease. What is the net advantage to leasing? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.
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