Question 17 10 pts The Deacon Co. is a pharmaceutical firm that has decided to acquire...
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Question 17 10 pts The Deacon Co. is a pharmaceutical firm that has decided to acquire a new line of centrifuges to improve its production process. They are now trying to determine whether to purchase or lease the centrifuges. These machines cost $44,000 and have a useful operating life of four years. If they purchase the centrifuges they will be depreciated over their four- year life by the straight-line method. The Deacon Co. pays taxes at a rate of 21% under the TCJA and their before tax borrowing cost is 7%. Based on this information what is the breakeven lease payment below which it is economical for The Deacon Co. to lease the centrifuges? O $12,561.64 O $14,156.47 O $12,976.76 O $15,556.18 O $10,251.64 Question 17 10 pts The Deacon Co. is a pharmaceutical firm that has decided to acquire a new line of centrifuges to improve its production process. They are now trying to determine whether to purchase or lease the centrifuges. These machines cost $44,000 and have a useful operating life of four years. If they purchase the centrifuges they will be depreciated over their four- year life by the straight-line method. The Deacon Co. pays taxes at a rate of 21% under the TCJA and their before tax borrowing cost is 7%. Based on this information what is the breakeven lease payment below which it is economical for The Deacon Co. to lease the centrifuges? O $12,561.64 O $14,156.47 O $12,976.76 O $15,556.18 O $10,251.64
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