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Your firm is considering leasing a new robotic milling control system. The lease lasts for 5 years. The lease calls for 6 payments of $300 thousand per year with the first payment occurring at lease inception. The black box would cost $1050 thousand to buy and would be straight-line depreciated to a zero salvage. The actual salvage value is zero. The firm can borrow at 8%, and the corporate tax rate is 34%. All answers are in thousands. What is the after-tax cash flow from leasing in year 0?
Positive
Pertaining to statements or analyses that are based on facts and devoid of any value judgments or recommendations.
Supply Curves
Graphical representations that show the relationship between the price of a good and the total amount of the good that suppliers are willing to sell.
Highly Inelastic
Describes a situation where the quantity demanded or supplied changes very little in response to changes in price.
Antiques
Objects of considerable age valued for their aesthetic or historical significance.
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