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What the present value of cost to the business of leasing

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Reference no: EM132757329

Problem 1: X intends to lease a machine on a 5 year operating lease for a payment of 3500 payable in advance. Tax rate is 20%, pre tax cost of borrowing is 15%. The present value of cost to the business of leasing the machine is closest too :

a) 10300

b) 10800

c) 11300

d) 11800

Reference no: EM132757329

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