PonchoParts, Inc

PonchoParts, Inc. manufactures reproduction parts for classic cars. The firm needs a computer- operated turret lathe that costs $440,000. It can borrow at 9.5%. The lathe will be used for five
Years, after which it will have a salvage value of $50,000. Enterprising Leasing, Inc. will lease the
Equipment to the firm for $100,000 per year. The firm's tax rate is 34%. If the lathe belongs in a 30%
CCA class, what is the break-even lease payment?

A) $86,567
B) $96,908
C) $98,950
D) $100,036
E) $102,132