A firm is considering leasing some new equipment for 5 years with annual payments of $37,500. The equipment would cost $155,000 to buy and would be depreciated straightline to a zero salvage value. The firm can borrow at 8 percent and has an effective tax rate of 0 percent. What is the maximum lease payment the firm would be willing to pay?

Group of answer choices

$38,820.75

$37,702.49

$39,842.56

$33,000.00