Leasing Service Inc has agreed to lease machinery to Intel Corporation. Consider a $30,000 semiconductor chip making equipment. The equipment will last for four years with the salvage value at the end of the 4 years is $0. The equipment can be depreciated on a three-year Straight-Line method with half-year convention. Assume that lease rates for old and new equipment are the same. Leasing Service Inc's pretax administrative costs including Maintenance, Insurance and Selling Cost are $5,000 per year and they occur at the beginning of each year. The cost of capital is 10% and the tax rate is 21%. Lease payments are made in advance, that is, at the start of each year. The inflation rate is zero. before a. What is the after tax break-even operating lease rate for the new equipment? b. What is the after tax break-even operating lease rate for the new equipment