What is the npv of the lease relative to the borrow and, Financial Management

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What is the npv of the lease relative to the borrow and

You are working for the finance department at ACME Corp. You are acquiring equipment and must dec... You are working for the finance department at ACME Corp. You are acquiring equipment and must decide if it is better to do a financial lease or to borrow and buy. Initial cost; $1000 MACRS 3 year depreciation (33.33, 44.45, 14.81, 7.41) Tax rate: 35% Cost of debt: 6% Annual lease payment: $250 What is the NPV of the lease relative to the borrow and buy?

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