Determine the yearly after tax cash outflows

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Reference no: EM131317536

Given the lease payments and terms shown in the following table, determine the yearly after-tax cash outflows for each firm, assuming that lease payments are made at the beginning of each year and that the firm is in the 40 percent tax bracket. Assume that no purchase option exists.

Firm	Annual Lease Payment	Term of Lease
A	$ 250,000	5 years
B	160,000	12
C	500,000	8
D	1,000,000	20
E	25,000	6

Reference no: EM131317536

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