1 A firm is considering the purchase or lease of a custom delivery van that costs $75,000 today or $1,800 monthly lease (paid in advance at the beginning of the month). A purchase would be depreciated using 4 year straight line, computed monthly. Compute the NPV of monthly cash flows (FCFF) of the purchase and lease. Assume that a purchased van is sold for the salvage value. Leased vans are returned to the leasing company for no value. There are a total of 48 lease payments. Use after tax FCFF to compute NPVs discounted at the MONTHLY discount rate (annual/12). Hint: Never divide tax rates by time (e.g. 12 for monthly income) because the tax is always the same