Perform a lease-versus-purchase analysis

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Anna is the financial manager for Beta Corporation. She has been asked to perform a lease-versus-purchase analysis on a new printing machine. The machine costs $360,000 and will be depreciated by the straight-line method with zero residual value over 5 years. Alternatively, the company can lease the machine with year-end payments of $95,000 over 5 years. The company's tax rate is 35%, and its before-tax cost of borrowing is 10%.

Reference no: EM133379035

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