Super sonics entertainment is considering buying a machine


Super Sonics Entertainment is considering buying a machine that costs $660,000. The machine will be depreciated over four years by the straight-line method and will be worthless at that time. The company can lease the machine with year-end payments of $205,000. The company can issue bonds at an interest rate of 10 percent. The corporate tax rate is 40 percent. What is the NAL of the lease?

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Financial Management: Super sonics entertainment is considering buying a machine
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