3. Company Express Wood needs a new wood-cutting equipment for its operations and considers two options. One option is to purchase a equipment and finance a purchase using a loan with 6.5% annual interest rate. Market price of the equipment is $70,000 (paid today), it is expected to be operational for 7 years, and annual maintenance costs (paid in the end of years 1 to 7) are $1,500. At the end of year 7 company will be able to sell the equipment for $15,000. Another option is to lease the equipment. Annual lease payments will be paid in the end of years 1 to 7. If company leases the equipment, it will pay only half of the annual maintenance costs stated above. Whats is the maximum annual lease payment that would make the company enter the lease agreement? Ignore tax considerations. (a) $11,753 (b) $12,503 (c) $13,221 (d) $10,925