Question 3 Homework. Unanswered Waterdown Industries is contemplating the acquisition of some new equipment. The purchase price is $40,000. The equipment has a 4-year life after which time it will be worthless. The equipment belongs in a 35 percent CCA class. The equipment can be leased for $12,000 a year. The firm can borrow money at 7 percent and has a 35 percent tax rate. What is the incremental annual cash flow for year 2 if the company decides to lease the equipment rather than purchase it? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a -$11,843 b -$11,193 $928 d $2,916 e -$4,778 Unanswered . 1 attempt left Submit