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Business, 06.01.2021 18:20 bellj9672

ANB Leasing is planning to lease an asset costing $210,000. The lease period will be 6 years. At the end of 6 years, the salvage value is estimated to be $30,000. The
asset will be depreciated on a straight-line basis of $30,000 per year over the 6-year
period. ANB’s marginal income tax rate is 40 percent, but its average tax rate is only
31.5%. If ANB Leasing requires a 12 percent after-tax rate of return on the lease,
determine the required annual beginning of the year lease payments

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