16. When financial leases pay (S26.5) In Section 26-5, we listed four circumstances in which there are potential gains from leasing. Check them out by conducting a sensitivity analysis on the Greymare Bus Lines lease, assuming that Greymare does not pay tax. Try, in turn,

(a) a lessor tax rate of 50% (rather than 21%),

(b) straight-line depreciation in years 1 to 6

(rather than immediate expensing),

(c) a four-year lease with four annual rentals (rather than an eight-year lease), and

(d) an interest rate of 20% (rather than 10%). In each case, find the minimum rental that would satisfy the lessor and calculate the NPV to the lessee.