Minimum lease payment


Problem: Real estate, Inc., has purchased a building for $1 million. the economic life of the building is 30 years and it will be fully depreciated over the 30 years using the straight-line depreciation method. the discount rate is 14% and the coporate tax rate is 35%. assume there is no inflation. what is the minimum lease payment the company should ask for? Assume that the lease payment is due immediately.

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Finance Basics: Minimum lease payment
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