You work for a chemical company which needs a new distillation unit. The unit costs...
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You work for a chemical company which needs a new distillation unit. The unit costs $100,000, must be replaced in four years, and is worthless at that time. It falls under Class 8 (CCA rate 20%). The firm can borrow at 10.50%. The equipment can be leased for $25,000. The tax rate is 30%. Based on the given information, net advantage to leasing (NAL) is:
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