You are given the following information relating to the financing of some equipm

You are given the following information relating
to the financing of some equipment:Equipment
cost:$60 000Estimated
Economic Life:10 yearsLease terms:8 annual payments of $10 363.94 with the first payment due upon
delivery.Loan terms:5 years 75% financing at 10%. Annual payments of $11 870.89 are
made at the end of each year.Taxes:lessee tax rate is 50%. Method of depreciation for tax
purposes is straight line.The equipment is needed for a term
of 8 years. If the firm purchases the equipment it can be sold at the end of 8
years for the scrap value. Average after tax cost of capital for lessee is 9%
(to be used to discount the value realized from scrapping).Evaluate the
best option you would use to finance this equipment (15)