1. You need a new piece of equipment for your manufacturing process. You can buy the equipment for $16,000. It has an estimated useful life of 4 years with a salvage value of $0. You also expect the market value to be So after 4 years. You can lease the same piece of equipment for 56,400 per year. Your corporate tax rate is 10% and your WACC is 15\%. Fill out the following table to determine the incremental cash flows for leasing vs. buying: 2. Calculate the NPV of the free cash flows above. Should you lease or buy the equipment? 3. If the cash flows in question 2 were calculated from the lessor's perspective (assuming everything were the same), what would be the NPV be for the lessor to lease out the equipment? 4. If the characteristics of the lessor and lessee are the same (as in questions 2 and 3) the NPV to the lessee will always be the opposite of the NPV to the lessor, meaning no lessee and lessor would ever agree to a lease contract. List and briefly discuss three comparative advantages that lessors typically have over lessees, leading to a deep leasing market