Note: Change the tax rate for XYZ to 25%

2. ABC Corp. is considering leasing an asset from XYZ Corp. Here are the relevant facts: ABC's interest costs are 10% and XYZ's interest costs are 7%. Show that it will be advantageous both for ABC to lease the asset and for XYZ to purchase the asset in order to lease it out to ABC. 3. Continuing with the above example: Find the maximum rental that ABC will pay and the minimum rental that XYZ will accept