Your firm is considering leasing a new photocopier.The lease lasts for nine years.The lease calls for 10 payments of $1,000 per year with the first payment occurring immediately.The copier would cost $8,100 to buy and would be depreciated using the straight-line method to zero salvage over nine years.The firm can borrow at a rate of 8%.The corporate tax rate is 30%.What is the NPV of the lease?
A) -$1,039.78
B) $6,610.22
C) $686.00
D) $360.00
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