The PV of after-tax lease payments is $123,000, based on N=10 years, a corporate tax rate of 50%, and an after-tax cost of debt of 10%, what is the before-tax annual lease payment. a) $20,017.68 b) $40,035.36 c) $15,929.06 d) $31,858.12 e) decrease as the firm uses debt to fund expansion projects PMT based on PV = 123,000, N=10, and r =.10, PMT = 20017.68, PMT(BT) = 20,017.68/(1-.5) = $40,035.36