Montclair Manufacturing is considering leasing some equipment. The annual lea payment would be $825,000 per year for six years. The appropriate interest rate is percent and the company is in the 23 percent tax bracket. What reduction in de capacity would occur if the company signs the lease? (Do not round intermedia calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Reduction in debt capacity $ 2,065,276.22X
Montclair Manufacturing is considering leasing some equipment. The annual lea payment would be $825,000 per year for six years. The appropriate interest rate is percent and the company is in the 23 percent tax bracket. What reduction in de capacity would occur if the company signs the lease? (Do not round intermedia calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Reduction in debt capacity $ 2,065,276.22X
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 1P
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