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What is the amount of the break-even lease payment

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Monika's Diner is considering the purchase of some new equipment costing $74,000. This equipment has a five-year life after which it will be worthless. The firm uses straight-line depreciation and borrows funds at 7.6 percent interest. The company's tax rate is 34 percent. The firm also has the option of leasing the equipment. What is the amount of the break-even lease payment?

Reference no: EM133003874

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