$4.$ Deira Investments is considering investment into Hospital Information System; it has two choices via leasing or buying the software and equipment

The purchase price is AED $420,000$ and the machine has a $5-$year life. If it buys the machine Deira will need to fund it using capital that costs them $9\%$ per year.

$($Alternatively$,$ the lease payments will be AED $100,250$ per year for $5$ years with rentals payable at the start of each year.

A$..$What are the respective present value costs of purchasing the machine or leasing it$?$

$(6$ marks $6$ marks$)$