Super sonics entertainment is considering buying a machine


Super Sonics Entertainment is considering buying a machine that costs $740,000. 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 $245,000. The company can issue bonds at an interest rate of 10 percent. The corporate tax rate is 35 percent.

What is the NAL of the lease? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NAL $

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Financial Management: Super sonics entertainment is considering buying a machine
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