question archive Monster Magnet Manufacturing is considering leasing some equipment
Monster Magnet Manufacturing is considering leasing some equipment
Subject:FinancePrice: Bought3
Monster Magnet Manufacturing is considering leasing some equipment. The annual lease payment would be $385,000 per year for 6 years. The appropriate interest rate is 7 percent and the company is in the 40 percent tax bracket.
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What reduction in debt capacity would occur if the company signs the lease? |
