All-Tek Is Considering Leasing Some New Equipment for 5 Years

All-Tek is considering leasing some new equipment for 5 years with annual payments of $27,500.The equipment would cost $115,000 to buy and would be depreciated straightline to a zero salvage value.The actual salvage value is zero.The firm can borrow at 8 percent and does not expect to owe any taxes for the next several years.What is the maximum lease payment All-Tek would be willing to pay?

A) $24,840.00
B) $23,000.00
C) $18,842.56
D) $28,802.49
E) $21,780.30