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Your firm is considering leasing a new robotic million control system. The lease lasts for 5 years. The lease calls for 6 payments of $300,000 per

Can you answer the five attached questions?
Your firm is considering leasing a new robotic million control system. The lease lasts for 5 years. The lease calls for 6 payments of $300,000 per year with the first payment occurring at lease inception. The black box would cost $1,050,000 to buy and would be straight-line depreciated to a zero salvage. The actual salvage value is zero. The firm can borrow at 8%, and the corporate tax rate is 34%. 1. What is the appropriate discount rate for valuing the lease? 2. What is the maximum lease payment that you would be willing to make? 3. What is the NPV of the lease? 4. What is the after tax cash flow from leasing in year 0? 5. What is the minimum lease payment that the lessor would be wiling to accept?
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