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Determine the minimum lease amount

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Question - Consider the example in this deck with the following criteria:-

Cost of Equipment: $1M

Annual Maintenance: $20K

-Residual Value at Y4: $200K

-Term of the Lease Agreement: 4 years

-Discount Rate: 6%

-CCA Depreciation Rate: 30% of remaining amount annually

Assume that the lease amount is fixed over four years, determine the minimum lease amount that the lessor should accept.

Reference no: EM132878902

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