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2.1 Wild Pet, Inc., a Pets's food and supplement tim, is considering the acquisition of a new Cats Croquette processing machine Wild Pet can purchase

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2.1 Wild Pet, Inc., a Pets's food and supplement tim, is considering the acquisition of a new "Cats Croquette processing machine Wild Pet can purchase the machine through the use of its normal financing mix (35% debt and 65% common equity) or lease it Pertinent details follow Acquisition price of the machine $45.000 Useful life 4 years Salvage value $5.000 Depreciation method Straight line Annual cash savings before tax and depreciation from the machine 515,000 Rate of interest on a four-year installment loan 12 Marginal tax rate 409 $10.000 Annual rentals (four year lease) $11750 Annual operating expenses included in the lease 14% Cost of capital Calculate the NPV Select one: a $ 427 b. Different answer C. $ 420 d. ($ 428) e $ 428 f. ($ 429) g. $ 429 h. S 430

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