Straight-line method and will be worthless at that time

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Super Sonics Entertainment is considering buying a machine that costs $670,000. The machine will be depreciated over five years by the straight-line method and will be worthless at that time. The company can lease the machine with year-end payments of $210,000. The company can issue bonds at an interest rate of 7 percent. The corporate tax rate is 30 percent.

What is the NAL of the lease?

Reference no: EM131352531

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