$3.$ Purchase versus lease: Stonewood General Hospital, a taxpaying entity, is considering a leasing arrangement for it$$s ambulance fleet. The fleet of ambulances costs $$375,000$ and will be depreciated over a $10-$year life to a salvage value of $$75,000.$ Stonewood General could finance the entire fleet with equal annual debt and principal payments at a before$-$tax cost of debt of $9$ percent and an after$-$tax cost of debt at $6$ percent for $10$ years. The implied lease rate is also $9$ percent. Alternatively, it could lease the fleet for $10$ years. The before$-$tax lease payments are $$45,000$ per year for $10$ years. Stonewood General$$s tax rate is $40$ percent. From a financial perspective, should Stonewood General lease or borrow the money to buy the ambulances?