An asset costs $420,000 and will be depreciated in a straight-line manner over its 3-year life.It will have no salvage value.The corporate tax rate is 32 percent,and the cost of borrowing is 8 percent.What lease payment amount will make the lessee and the lessor equally well off?
A) $145,717.08
B) $154,141.11
C) $157,778.03
D) $162,795.34
E) $165,025.50
Correct Answer:
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