Mulitple choice Q

If a firm can buy a machine for $80000, takes an investment tax credit of 15%, and lease outthe machine for 9 years with lease payments at the beginning of the year, how much should the minimum annual lease payments be? Assume a 5-year straight-line depreciation, zero salvage and a tax rate of 35%. Assume further that it can borrow at a before tax rate of 7%.

Group of answer choices

Choose an answer from the following

$9,600

$8,900

$10,300

$9,300

$8,300