23 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% Should the company lease or buy the machine? Select one: a. Should not lease nor buy b. Buy O c. Lease