A firm is considering the purchase of a new equipment costing $7,252,695 which qualifies for a 40% CCA rate. This equipment has a 4-year life after which it will be worthless. The firm can lease it for $2,204,580 per year for its useful life. Assume that the firm makes payments at the end of the year, the asset pool remains open, the tax rate is 42%, and the pre-tax cost of borrowing is 10.66%. What would the lease payment have to be for both the lessor and lessee to be indifferent to the lease?

Question 12 options:

	$2,285,377
	$2,343,977
	$2,402,576
	$2,461,175
	$2,519,775