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Witten Entertainment is considering buying a machine that costs $548,000. The machine will be depreciated over...

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Finance

Witten Entertainment is considering buying a machine that costs$548,000. The machine will be depreciated over five years by thestraight-line method and will be worthless at that time. Thecompany can lease the machine with year-end payments of $143,000.The company can issue bonds at an interest rate of 8 percent. Thecorporate tax rate is 23 percent.

What is the NAL of the lease?

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