7. (15 points) You are deciding whether to purchase or lease a new machine: The purchase cost of the machine would be $225,000. The life of the machine is four years, with salvage value of $75,000 at that time. The supplier is offering a special deal - a four year net lease for $48,500 per year, with payments due at the start of each year. You would be responsible for all maintenance, taxes, and insurance. a. Your cost of capital is 15%. Is the lease a better deal than buying the machine? b. The new machine will provide added profit of $63,000 per year. Based on the more favorable of leasing or buying, should you acquire the machine at all