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Suppose the Distillation Unit Is Actually Worth $5000 (Salvage Value)

Question 26

Multiple Choice

Suppose the distillation unit is actually worth $5000 (salvage value) at the end of five years. What is the net advantage to leasing?


A) -$3,300
B) -$235
C) $4,046
D) $7,519
E) $13,793

Correct Answer:

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