Super sonics entertainment is considering buying a machine


Super Sonics Entertainment is considering buying a machine that costs $670,000. The machine will be depreciated over five years by the straight-line method and will be worthless at that time. The company can lease the machine with year-end payments of $210,000. The company can issue bonds at an interest rate of 7 percent. The corporate tax rate is 30 percent.

What is the NAL of the lease?

(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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Financial Management: Super sonics entertainment is considering buying a machine
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