Question: Use the following data in Table 3 to decide should the Company lease or purchase the new production line. The PV of the costs of

Use the following data in Table 3 to decide should the Company lease or purchase the new production line. The PV of the costs of the purchase decision is $72,450.

Table 3: Annual Payment* Tax rate Rental Period (years) Cost of Borrowing (before tax) * Payments are due at the beginning of each year $ 25,000 40% 5 9.50%

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