A ﬁrm borrows money at 7 percent, uses straight-line depreciation, and has a 35 percent tax rate. The ﬁrm's break-even after-tax annual lease payment on a machine is $13,407. How much will the
ﬁrm have to pay annually to the lessor to lease this machine?

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The Answer of A ﬁrm borrows money at 7 percent, uses straight-line depreciation, and has a 35 percent tax rate. The ﬁrm's break-even after-tax annual lease payment on a machine is $13,407. How much will the
ﬁrm have to pay annually to the lessor to lease this machine?

A ﬁRm Borrows Money at 7 Percent, Uses Straight-Line Depreciation