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Explain why the multiplier is greater than 1.
Straight-Line Depreciation
A method of allocating the cost of a tangible asset over its useful life in equal annual increments.
Annual After-Tax Lease Payment
The yearly lease payment amount after accounting for tax deductions.
Straight-Line Depreciation
A method of depreciation that allocates an equal amount of the asset's cost to each year of its useful life.
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