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ABC Co wants to purchase a equipment worth $24,000. It will be worthless in three years. ABC Co can borrow the money at 10 percent

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ABC Co wants to purchase a equipment worth $24,000. It will be worthless in three years. ABC Co can borrow the money at 10 percent to purchase the asset or lease the asset where yearly payments will be $9,000 per year, payable at the end of each year. The machine belongs to a CCA rate of 30 percent. The tax rate is 40 percent. The asset pool will be closed after the three years. All lease payments and tax payments occur at the end of the year. The NAL for ABC Co. is: $430.72 $955.90 $1,362.26 $1,152.44 $1,232.63

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