Question 11 Davos Co. intends to lease a machine on a 5-year operating lease for a payment of 3,500 payable in advance. The tax rate is 30%. The pretax cost of borrowing is 15.71%. What is the present value cost to the business of leasing the machine? A. 9,440 B. 10,480 C, 10,864 D, 10,974