Fargo North is considering the purchase of some new equipment costing $74,000. 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 8 percent rate of interest. The company's tax rate is 34 percent. The firm also has the option of leasing the equipment. What is the amount of the break-even lease payment?

$34,696

$27,900

$38,717

$44,896

$41,478