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Business, 01.04.2021 22:00 Tonyswife15

Excellent Inc. is considering leasing or disposing of the following equipment: Cost of equipment $300,000 Less accumulated depreciation (200,000) Book value $100,000 Lease option: Total revenue for five-year lease $200,000 Total estimated repair, insurance, and property tax expenses during life of lease 50,000 Residual value at end of fifth year of lease 0 Sell option: Sales price $150,000 Commission on sales 7% Calculate the differential revenue from the lease alternative.

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