Charleston Marina is considering either leasing or buying some new equipment it needs for repairing their boats from Wildcat Company. The lease payments would be $7,200 a year for 3 years. The purchase price is $20,800. The equipment has a 3-year life and then is expected to have a resale value of $4,700. The firm uses straight-line depreciation. Charleston Marina can borrow money at 8.5 percent. However, Wildcat Company can borrow at 7 percent. The corporate tax rate is 34 percent for both companies.