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Unformatted text preview: 1-20-60000 7.469-448140 Repairs and maintenance 1-20 50000 7.469 373450 Salvage Value 20 5000000 0.104 520000-12300900 According to the Net present value, they should lease and not buy. The salvage value is what we now expect to get by selling the building after 20 years. We cannot predict it till it happens. Even if we include the Salvage value at $5 million, it is still better to lease than buy....
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This note was uploaded on 10/10/2010 for the course ACCT 225 S taught by Professor Webster during the Spring '10 term at Franklin.
- Spring '10