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Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the 1 answer below » Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis over seven years. Craxton can lease the fab- ricator for $130,000 per year for seven years. Craxton’s tax rate is 35%. (Assume the fabricator has no residual value at the end of the seven years.) What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease? What are the free cash flow View complete question » Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis over seven years. Craxton can lease the fab- ricator for $130,000 per year for seven years. Craxton’s tax rate is 35%. (Assume the fabricator has no residual value at the end of the seven years.) What are the free cash flow consequences of buying the fabricator if the lease is a true tax lease? What are the free cash flow consequences of leasing the fabricator if the lease is a true tax lease? What are the incremental free cash flows of leasing versus buying? View less » Sep 17 2015 01:57 PM