Use the following information to answer questions 13 18.

The Department of Finance at Clemson University is considering acquiring 25 trading stations for the new trading room. The cost of each trading station is $4,000. The school is tax exempt, making their marginal tax rate equal to zero. If the school purchased and owned the stations, theyd be depreciated on a straight-line basis to a book value of $0 after 5. The salvage value for each station is expected to be $500 at the end of 5 years. To purchase, Clemson can borrow the needed funds at a pre-tax rate of 12%. If purchased, Clemson also incurs annual maintenance expenses of $300 for each station. These expenses would not be incurred if the stations were leased. If leased, the lease rate would be $1,100 per year for each station, payable at the end of each year. Clemsons WACC is 12 percent.

Determine the present value of the after-tax annual lease payments.

Group of answer choices

54,862

75,454

82,941

99,131