1. You work as a financial analyst at WPWilly, Inc. You are evaluating if a new machine should be purchased or leased. The new machine can be purchased on January 1 for $21,000 and can be depreciated over 3-year period using straight-line with half-year convention. The machine has a 4- year actual life and the salvage value at the end of the 4 years is $0. Operating expenses will be $2,000 a year. Instead of purchasing, the company can lease the machine for an annual payments of $3,500 per year with the first payment occurring immediately. The interest rate on the company's debt is 9%. The corporate tax rate is 21%. The weighted average cost of capital is 12 percent. What is the Present Value of cost of Leasing? a. What is the Present Value of the cost of Buying? b