Break-Even Lease Payment Assignment | Homework For You
January 23rd, 2020
48. Fargo North is considering the purchase of some new equipment costing $112,000. This equipment has a 5-year life after which it will be worthless. The firm uses straight-line depreciation and borrows funds at 9 percent interest. The company tax rate is 33 percent. The firm also has the option of leasing the equipment. What is the amount of the break-even lease payment?
A. $28,684
B. $31,467
C $31,775
D. $33,719
E $34,897. Get Finance homework help today