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Carmichael Cleaners needs a new steam finishing machine that costs $100,000. The company is evaluating whether it should lease or purchase the machine. The equipment into the 3 and it would be for and then sold, the nrm plans to move new facility at time. that The estimated value of the years is $30,000. A maintenance contract on the equipment would cost per year, payable at the of each year ternatively, the firm could lease the equipment for payment of per yeor payable at the beginning of year. The include firm is nterest loan, interest payable at the end of the year, to tax bracket, and it could obtain a 3-year simple cost If is a positive Net Advantage to Leasing is the NAL? (Note: Assume MACRS purchase the equipment at a before-tax of equipment. Otherwise, it will buy rates for Years 1 to 4 are 0.3333, o 4445, 0.1481, and 0.0741.) a. $5,734 $6,023 $6,324 d. $6,640 ie. $6,972

Financial Management, Finance

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