Your firm will either purchase or lease a new fabricator. If purchased, the fabricator will cost

$$940,000$ and be depreciated for tax purposes on a straight$-$line basis over five years. The fabricator

has no residual value at the end of the five years Your firm can also lease the fabricator for five

years $($payments are made at the start of the year$).$ The firm can borrow at $15\%$ pre$-$tax. Assume

that the tax deductibility benefit of the lease payments occurs at the time the lease payments are

made.

If the firm's corporate tax rate is $40\%,$ what would the before$-$tax lease payment have to be to

make your firm indifferent between leasing and buying the fabricator? THE CORRECT ANSWERS IS B SHOW ME HOW TO GET IT on paper no excel

A$)$ $$166,467$

B$)$ $$254,537$

C$)$ $$152,722$

D$)$ $$277,445$

E$)$ There is not enough information.

$12.$ Pretend now that your firm pays no taxes, but all other details are as given above. Suppose the

lessor has set the lease payment at $$23.$ THE CORRECT ANSWER IS A SHOW ME HOW TO GET IT on paper no excel

A$)$ $$53,355$

B$)$ $$169,004$

C$)-$$$239,147$

D$)-$$$123,497$

E$)$ $$345,857$