Compute the cost to lease if lease payments

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B Corporation is considering a copy machine that can be leased for $4,000 a year for 6 years. The company's marginal tax rate is 27 percent and the yield to maturity on the company's debt is 5.9 percent. Compute the cost to lease if lease payments and associated tax savings are at the:

a. beginning of each year.

b. end of each year.

Reference no: EM131561943

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