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How do I calculate the annual lease payments?

Annual lease payments start at the beginning of the year. Purchase price of machine is $200,000 and will be leased for 5 year period. Straight-line depreciation of 40,000 per year with zero book salvage value; however, salvage value is estimated to actually be $35,000 at the end of 5 yrs. The leasing company is required to earn 14% after tax rate of return on the lease. The lease company uses a tax rate of 40%.

How do I calculate the annual lease payments?

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