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1)If the after tax rate to buy a machine is 6% and WACC is 11%, for appraisal of the decision to buy the machine we use 6% discount and factor and lease 11%?
After the decision is made to buy or lease , which discount factor do we use to see whether the project should be selected or not?
2) If similar discount rates were given in 1) and we just had to do a investment appraisal and we were buying a machine , which discount factor would be used?
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