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    Calculate yearly after-tax outflow for leasing contract

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    A firm is in the 40% tax bracket. Assuming no purchase option exists and lease payments are made at the beginning of each year, what is the yearly after-tax cash outflow for a leasing contract with an annual payment of $50,000 and a term of 5 years?

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    Solution Summary

    The solution calculates yearly after-tax outflow for leasing contract.