What is the interest rate that the Leasing Company could give to make the next year Net Profit not influenced? Read the details..

A company wants to sell out its debt to a Leasing company against disposing its production lines.

What is the interest rate that the Leasing Company could give to make the next year Net Profit not influenced?

If:

- Current Debt Balance =37 m paid on5 fixed installments at end of each year.

- next year Interests =4.74 m

- Production lines Book value =54 mwith Accumulated Depreciation =8 m

- Annual Depreciation Expense =3.6 m

- Lease installments will be paid on8 fixed installments at end of each year

-Transferring debt will be in01/01/next year