2. The lessee's lease analysis Aa Aa Consider the case of Scorecard Corporation: Scorecard Corporation is considering the purchase of new manufacturing equipment that will cost $35,000 (including shipping and installation). Scorecard can take out a four-year, $35,000 loan to pay for the equipment at an interest rate of 8.40%. The loan and purchase agreements will also contain the following provisions: . The annual maintenance expense for the equipment is expected to be $350. 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 scorecard is 45%. Note: Scorecard Corporation 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: $12,692.22 $63,461.12 $10,661.47 $106.62 Year 1 Year 2 Year Year 4 Tax savings from depreciation Net cash flow Thus, the net present value (NPV) cost of owning the asset will be: O -$20,760 O -$48,485 O $25,725 O $21,260