Considering buying machine-What is the NAL of the lease

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Reference no: EM131082789

Super Sonics Entertainment is considering buying a machine that costs $660,000. The machine will be depreciated over four years by the straight-line method and will be worthless at that time. The company can lease the machine with year-end payments of $205,000. The company can issue bonds at an interest rate of 10 percent. The corporate tax rate is 40 percent. What is the NAL of the lease?

Reference no: EM131082789

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