Suppose that Mr$.$ Agirich of Agirich Farms considers leasing a tractor instead of purchasing it$.$ The leased tractor is the same as the tractor that would be purchased and must be operated and maintained the same. Mr$.$ Agirich requires at least a $12\%$ pre$-$tax return on capital on this type of investments. Assume that Mr$.$ Agirich expects inflation to be $3\%$ and his marginal tax rate to be $30\%.$ Mr$.$ Agririch can buy the tractor for $$45,000$ and sell it for $$35,000$ in three years $($nominal dollars; do not need to adjust for inflation$).$ The tractor can be depreciated for tax purposes over seven years.