Fargo North is considering the purchase of some new equipment costing $75,000. This equipment has a 2-year life after which time it will be worthless. The firm uses straight-line depreciation and borrows funds at a 8 percent rate of interest. The company's tax rate is 35 percent. The firm also has the option of leasing the equipment. What is the amount of the break-even lease payment?
$39,277
$28,460
$42,038
$45,456
$35,256