Multiple choice Q

If a firm can buy a machine for $90000, takes an investment tax credit of 30%, 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 6-year straight-line depreciation, $13500 salvage and a tax rate of 25%. Assume further that it can borrow at an after-tax required rate of return is 6%?

Group of answer choices

choose from of the following

$7,200

$6,800

$6,400

$7,300

$7,800