You work for a subsidiary of a company that leases out earth moving equipment. You are looking at purchasing a new bulldozer for USD 120,000. You estimate the life of this equipment at 10 years and you will depreciate it in a straight line over 9 years and, to be conservative, assume no terminal value. Your administration, maintenance and insurance costs for the bulldozer are estimated to be USD 10,000 per year. If your cost of borrowing is 7% and your tax rate is 28% what is the break-even annual income that you need to generate from the equipment assuming that the lease payments are made in advance at the beginning of each year? Calculate.