Lease Payment
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26. Real Estate, Inc., has purchased a building for $1 million. The economic life of the building is 30 years and it will be fully depreciation over the 30 years using the straight-line depreciation method. The discount rate is 14% and the corporate tax rate is 35%. What is the minimum lease payment the company should ask for? Assume that the lease payment is due immediately.
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Solution Summary
The solution determines what is the minimum lease payment the company should ask for.
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I used a financial calculator to calculate the lease.
$1,000,000 Loan
$ 30 years or 360 months
Int ...
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