3. Seattle Public Library is trying to decide whether they should purchase or lease a large plotter for use by the library patrons (a large printer that can print posters and maps). It will cost the library $20,000 to purchase the plotter plus $500 each year in maintenance and cartridge costs. The plotter can be used for seven years, after which it can be sold for about $1,500. The same plotter can be leased from a leasing company at $3,500 per year for 7 years. Lease payments will include all maintenance and cartridges. Assume you will use this equipment for 7 years - leased or purchased. Assume that the market the discount rate is 6%. Which alternative should the library use and why? Use the NPV approach; prepare two scenarios (buy vs. lease), find NPVs for both and make your selection. 4. Would your answer change if the interest rate increased to 12%? If so, which option should be selected and why?