2. The lessee's lease analysis Aa Aa B Consider the case of Mitata Company: Mitata Company is considering the purchase of new manufacturing equipment that will cost $20,000 (including shipping and installation). Mitata can take out a four-year, $20,000 loan to pay for the equipment at an interest rate of 4.80%. The loan and purchase agreements will also contain the following provisions: . The annual maintenance expense for the equipment is expected to be $200. . The equipment has a four-year depreciable life. The Modified Accelerated Cost Recovery System's (MACRS) depreciation rates for a three-year asset are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. The corporate tax rate for Mitata is 40%. Note: Mitata Company is allowed to take a full-year depreciation tax-saving deduction in the first year. Based on the preceding information, complete the following tables: Value Annual loan payment will be: Annual tax savings from maintenance will be: [ Year 1 Year 2 Year 3 Year 4 Tax savings from depreciation Net cash flow - Thus, the net present value (NPV) cost of owning the asset will be: O -$28,381 $15,582 -$12,378 O $12,878