12C Bearns Ltd., a manufacturer of lighted hockey pucks, is negotiating with the Hat Trick Company to purchase or to lease a machine that produces red-lighted pucks. The machine would cost $140,000. In five years the machine would have an estimated salvage value of $35,000 its useful economic llfe is nine years. 12C Beams can borrow funds at 9 percent from its Playolf Bank and has a tax rate of 25 percent. The capital cost rate on this machine is 30 percent, and 12C Beam's cost of capital is 14 percent. Lease payments would be at the beginning of each year, and tax savings would occur at the end of each ycar. Lease payments would be $29.000 over a flve-year term We note that of all the cash flows, the salvage value has the greatest uncertainty. We recognize this by discounting the salvage value at a higher discount rate-the cost of capital a-1. Calculate PV cost of lease alternative. (Do not round the intermediate calculetions. Round the final nnswer to nearest whale dollar, Input the answer as positive value.) PV cost 0.2. Calculate PV cost of borrowing/purchase alternative. (Do not round the intermediate calculations. Round the final answer to nearest whole dollor. Input the answer as positive volue.) Pcost$ b. Shouid 12 C Beams Lid. lease or borrow to purchase the machine? Lease Borrow/Purchase