What is after tax cash flow from leasing relative to purchas

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Reference no: EM13844945

Your firm is considering leasing a new robotic milling control system. 5 year lease. 6 payments of $300,000 starting at inception. $1,050,000 to buy system with straight line depreciation to zero salvage value. actual salvage value is zero. firm can borrow at 8%, corporate tax rate is 34%. what is the after tax cash flow from leasing relative to the after-tax cash flow from purchasing in year 0?

Reference no: EM13844945

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