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Statistics homework help

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5 year, $6,000,000 bank loan to finance service equipment. The loan has an interest rate of 8.50% and would be amortized over 5 years, with 5 end-of-year equal payments. Sutton can also lease the equipment for 5 end-of-year payments of $1,825,000 each. How much larger or smaller is the bank loan payment than the lease payment? Note: subtract the loan payment from the lease payment.

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