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1 2 c beams ltd a manufacuring of lighted hockey pucks is negotating with hat trick company to purchase or to lease a machine that

12c beams ltd a manufacuring of lighted hockey pucks is negotating with hat trick company to purchase or to lease a machine that produces a red -lighted pucks the machine would cost $140000 in five years the machine would have an estimated salvage value of $35000 itsuseful economic life is nine years. 12C beams can borrow funds at 9 pecent from its playoff bank and has a tax rate of25 percent the capital cost rate on thismachine is 30 percent and12C beamscost of cappital is14 percent lease payments would beat the begining of each year and tax savings would occur at the end of each year.lease payments would be $29000 over five years terms we note that of all the cash flows the salvage value has the greatest uncertainely we recognize this by disounting the salvage value at a higher discount rate the cost of capital a-1 calculatepv cost of lease alternative ( do not round the intermiiadte calculations round the final answer to nearest whole dollar put the answer as positive value) a-2- calculate pv cost of borrowing alternative () c- should12C beams ltd lease or borrow to purchase machine

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