River-ion Mining plans to purchase or lease 3220.000 worm of excavation equipment if purchased. the equipment will he depreciated on a straight-line basis over five years. after which it will be worthless. If leased. the annual lease payments will be $55000 per year for five years. Assume Riverton's borrowing cost is 8%. its tax rate is 35%. and the lease qualities as a true tax lease. a. If Riverlon purchases the equipment. what Is the amount of the lease-equivalent loan? 0. Is Riverton better off leasing the equipment or nancing the purchase using the lease equivalent lean? c. What is the effective after-tax lease borrowing rate? How does this compare to Riverlion's actual after- lax borrowing rate