Kendore Electric Limited is about to enter into a lease with annual lease payments of $211 550 for a6 year term. The company's tax rate is 28% and its borrowing rate is 6%. The first lease payment isdue when the contract is signed. What is the present value of the after-tax cost of the lease forKendore? Round your final answer to the nearest dollar.
A) $1 144 926
B) $837 623
C) $883 581
D) $933 376
Correct Answer:
Verified
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