A 24-month lease on an equipment with an initial cost of $940,000 is $26,700 per month. After 24 months the equipment is return to the leasing company. As an alternative the equipment can be purchased with no down payment and 24 equal monthly payments and an interest rate of 12%. At the end of 24 months the purchaser owns the equipment and its market value is half the purchase price. Over what range of nominal interest rates is leasing the desired alternative? What are some of the explanations that would make leasing more attractive