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Determining the npv of leasing-asb

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ASB is considering leasing a new machine. The lease calls for 9 payments of $1,353 per year with the first payment occurring immediately. The machine costs $8,398 to buy. The present value of CCA tax shield is $1,348. The present value of its salvage value is $452 and the present value of CCA recapture is $43. ASB firm can borrow at a rate of 10%. The corporate tax rate is 30%. What is the NPV of leasing?

Reference no: EM133056417

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