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

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2.2 Wild Pet, Inc., a Pets's food and supplement firm, 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 $16,000 Rate of interest on a four year installment loan 12% Marginal tax rate 40% Annual rentals (four-year lease) $13 000 Annual operating expenses included in the lease $1.750 Cost of capital 14% Calculate the NAL Select one a ($ 2.008) ($ 2009) CS 2,009 0 $2,008 e Different

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