o It is usell to Use lRR to determine whether Aberlyn's total return is adequate. In doing so, assume the following: The lease does not qualify as a true lease for tax purposes. This implies that the principal repayment is not taxable, but the interest payment received by Aberlyn will be taxed. The contract calls for yearly interest payments starting at the beginning of year 2. Take that to mean the end of year 1 (with two more interest payments to come at the end of years 2 and 3). Aberlyn is also taxed at 40%