help with part b.

Quartz Corporation is a relatively new firm. Quartz has experienced during its early years to provide it with at least eight years of tax loss so Quartz's effective tax rate is zero. Quartz plans to lease equipment fror Company. The term of the lease is six years. The purchase cost of the $850,000. New Leasing Company is in the 22 percent tax bracket. transaction costs to the lease. Each firm can borrow at 8 percent. a. What is Quartz's reservation price? (Do not round intermediate ca round your answer to 2 decimal places, e.g., 32.16.) b. What is New Leasing Company's reservation price? (Do not round calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. $ Reservation price Reservation price 183,868.08 111,537.79 b. Quartz Corporation is a relatively new firm. Quartz has experienced enough losses during its early years to provide it with at least eight years of tax loss carryforwards, so Quartz's effective tax rate is zero. Quartz plans to lease equipment from New Leasing Company. The term of the lease is six years. The purchase cost of the equipment is $850,000. New Leasing Company is in the 22 percent tax bracket. There are no transaction costs to the lease. Each firm can borrow at 8 percent. a. What is Quartz's reservation price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is New Leasing Company's reservation price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Reservation price Reservation price $ $ 183,868.08 111,537.79 b