Jamestown Supply is considering leasing some equipment for four years at an annual payment of $16,900. The firm has a pretax borrowing cost of 7.5 percent and a tax rate of 21 percent. What is the amount of the aftertax lease payment?
A) $16,103
B) $12,250
C) $12,667
D) $13,351
E) $13,820
Correct Answer:
Verified
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