Question: A lessor will charge $33,500 a year for a five-year lease on equipment costing $134,000. The equipment has a 5-year life after which time it

A lessor will charge $33,500 a year for a five-year lease on equipment costing $134,000. The equipment has a 5-year life after which time it will be worthless. The lessee uses straight-line depreciation, has a tax rate of 25 percent, and borrows money at 8 percent. What is the net advantage to leasing? OA) $10,574 OB) $55 OC) $6,283 OD) -$58 O E) $12,638

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