Sigma Tools Will Lease a Computerized Stamping Machine from StarBanc

Sigma Tools will lease a computerized stamping machine from StarBanc.The machine costs $500,000 and will be depreciated on a straight-line basis to a zero book value over the next 5 years, which is also the term of the lease.The expected salvage value in 5 years is $25,000.StarBanc's marginal tax rate is 30 percent and it requires an after- tax rate of return of 12 percent on investments of this type.What annual, beginning of the year, pretax lease payment must StarBanc receive to earn the required 12 percent return?

A) $135,133
B) $93,540
C) $94,593
D) $100,000