11. to Kate The interest rate implicit in the loan is 9% and is known to both parties. Katie incremental borrowing rate is 8%

ponts Fust Lease Corp leases equipment to Kate The interest rate implicit in the loan is 9% and is known to both parties Kalo's incremental borrowing rate is 8% Market rato on similar leases is everaging 10% What interest rate should Kite use to compute the presion value of lease payments? 1.10% O2.9% 03.8% 04.8.5%