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Food Canners, Inc. needs some new equipment costing $790,000 if purchased. The equipment has a 3-year life after which time it would be worthless. The

Food Canners, Inc. needs some new equipment costing $790,000 if purchased. The equipment has a 3-year life after which time it would be worthless. The firm uses straight-line depreciation over the life of the asset. Food Canners, Inc. borrows money at 7.50 percent and has a 36 percent tax rate. The equipment can also be leased for 3 years. What is the break-even lease payment?

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