Nason Farms Is Considering the Purchase of a Delivery Truck

Nason Farms is considering the purchase of a delivery truck costing $39,000. The truck will be used for 3 years and then it will be worthless. The financing rate for the purchase is 8 percent and the corporate tax rate is 35 percent. The firm uses straight-line depreciation. What is the break-even lease payment amount?

A) $15,115
B) $17,318
C) $17,546
D) $21,038
E) $23,254