Fargo North is considering the purchase of some new equipment costing $70,000. This equipment has a 2-year life after which time it will be worthless. The firm uses straight-line depreciation and borrows funds at a 10 percent rate of interest. The company's tax rate is 35 percent. The firm also has the option of leasing the equipment. What is the amount of the break-even lease payment?

$33,523

$43,723

$40,305

$37,544

$26,727