9.Intel Inc is looking to acquire a new equipment for a project that will last for eight years. The after-tax required rate of return of the project is 12% per annum. Intel can borrow at a before-tax interest rate of 8% per annum and buy the equipment outright or lease the equipment from ABC's Leasing. The applicable corporate tax rate is 28% and the equipment will be fully depreciated to zero over the eight years using a straight-line method. Intel evaluated the lease and decided to buy the equipment by borrowing since the NPV of lease versus borrow-to-buy analysis was estimated to be -$15,000.- However, subsequently Intel realised that in the analysis the purchase cost of the equipment had been under-estimated by $25,000, and also the salvage value of the equipment (at the end of the lease term) had been under- estimated by $5,000. Given the correct purchase price and salvage value, which of the following statements now accurately describes Intel's decision regarding the acquisition of this equipment? k It is now indifferent between lease and borrow-to-buy. None of the other answers is correct. The equipment should now be leased since the NPV of lease versus borrow-to-buy is now $1,822.60.- The equipment should be leased since the NPV of lease versus borrow-to- buy is now $5,000 after the inclusion of additional purchase cost and salvage value. The equipment should still be purchased by borrowing since the NPV of lease versus borrow-to-buy is now - $1,422.60