A firm needs to either lease or buy a $1.2 million piece of equipment for the next three years. The pre-tax lease payments would be $375,000 a year for the three years (payable at the end of each year). If the equipment is purchased, the appropriate CCA rate is 30%. The equipment will have a no residual (salvage) value at the end of the three years. The tax rate for the lessor and the lessee is 34%. The loan rate for your firm for this purpose is 8% pre-tax. 11. What is the present value of the savings due to the CCA tax shield? A) $286,660 B) $338,238 C) $332,045 D) $312,892 B) none of the above