Mr. Sarfaz, CEO of ABC, was considering options for financing $1,000,000 of new forklifts needed for the commercial storage facilities. In Kuwait there was no corporate tax, therefore ABC could not take advantage of the equipments depreciation tax shield. Mr. Sarfaz was considering a fifteen years lease of the equipment. The Canadian lessor, DEF Leasing Co., had offered to structure a capital lease for ABC Company, as long as DEF could arrange non-recourse financing for the equipment. DEF wanted to purchase the forklifts with $200,000 of its own cash and $800,000 borrowed from a bank in Dubai at 7.5%. The leasing companys effective tax rate was 30%, and Canadian tax laws permit use of the double-declining balance method for leasing companies. The forklifts had a tax life of seven years what is the double declining balance? how to calculate the double declining balance