Your Company Is Considering the Purchase of a Fleet of Cars

Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years. At the end of four years they will be worthless. The corporate tax rate is 34%. The cars belong in CCA class 10 (a 30% class) . What is the break-even lease payment?

A) $35,675
B) $47,328
C) $55,000
D) $56,128
E) $57,705