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ABC Co is considering either leasing or buying a new freezer unit. The unit costs $6.4 million and it qualifies for a 30% CCA rate.

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ABC Co is considering either leasing or buying a new freezer unit. The unit costs $6.4 million and it qualifies for a 30% CCA rate. The unit will be valueless in four years. ABC Co can lease it for $1.92 million per year for four years. The assets pool remains open and payments are made at the end of the year. ABC faces a tax rate of 40% and can borrow at 7% pre-tax. What would the lease payment have to be for both lessor and lessee to be indifferent to the lease? $1,985,338 $1,937,363 $2,200,357 $2,156,357 $1,965,060

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