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ABC Leasing Company 24 The ABC Leasing Company has the opportunity to write a 5-year lease for equipment that costs $260,000. Depreciation would follow the
ABC Leasing Company 24 The ABC Leasing Company has the opportunity to write a 5-year lease for equipment that costs $260,000. Depreciation would follow the MACRS 3-year schedule (0.33, 0.45, 0.15, and 0.07). The 5 ease payments would be due at the beginning of the year. ABC's borrowing rate is 10% while its tax rate is 25%. At the end of the lease, ABC expects that the market value of the equipment will be zero. ABC is considering writing the lease with $64,000 payments. 4.5 points What is the minimum payment that ABC should be willing to accept? 65,288. 62,379. 58,488. 0 46,784. O 38,355
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