Ballentine Inc. ,which has a zero tax rate due to tax loss carry-forwards,is considering a 6-year,$5,200,000 bank loan in order to buy a new piece of equipment.The loan will be amortized over 6 years with end-of-year payments and has an interest rate of 8.5%.Alternatively,Ballentine can also lease the equipment for an end-of-year payment of $1,220,000.By how much does the lease payment exceed the loan payment? Do not round your intermediate calculations.
A) $70,239
B) $93,652
C) $58,532
D) $66,337
E) $78,043
Correct Answer:
Verified
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