The Howell Company has the opportunity to lease equipment that costs $10,000 for 10 annual payments (made at the end of the year) of $1,500. If they were to borrow and purchase the asset, the borrowing rate is 9.3%. Their tax rate is 21%. They will depreciate the equipment The Howell Company has the opportunity to lease equipment that costs $10,000 for 10 annual payments (made at the end of the year) of $1,500. If they were to borrow and purchase the asset, the borrowing rate is 9.3%. Their tax rate is 21%. They will depreciate the equipment