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Unformatted text preview: 4 $2,964.00 $1,185.60 $939.11 Salvage Value Salvage Amount $10,000.00 Tax Cost (4,000.00) Net Salvage Realized $6,000.00 $4,752.56 Net Present Value of Owning $(20,958.17) 4. Present Value of Leasing Annual Lease Payments $(10,000.00) Tax Savings 4,000.00 Net Outlay after taxes $(6,000.00) Present Value of Leasing ($22,038.07) Based upon this analysis, the firm should buy the asset, not lease it. f debt....
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