A company has the option of purchasing an asset at $ 85,000 that is depreciable, for tax purposes, at a declining rate of 30%. The expected residual value at the end of year 10 (start of year 11) is $ 15,000. Another possibility available to the company is to lease this asset for 10 years in exchange for annual rents of $ 12,000 due at the start of the year (the tax savings relating to the rents are however achievable at the end of the year. year). If the company is to purchase the asset, it will incur bank debt of $ 85,000 at an effective rate of 12% (pre-tax cost of debt) over the entire 10-year period. Repayment of this loan will be made through a series of identical annual end-of-year payments. The tax rate is 45%. Calculate the relative cost of the purchase.