A company wants to get a bullet proof luxurious limousine for its CEO. The limousine would cost $1 million to buy. The limousine will be depreciated at a rate of $100,000 per year for tax purposes. Suppose the limousine could be sold off in five years for $500,000. Suppose also that the firm could alternatively sign a five-year operating lease for the limousine with lease payments of $150,000 per year. Each payment would be due at the beginning of the year. The companys effective tax rate is 25 percent. The before tax rate of borrowing is 8 percent. Cash Flows in $ Year 0 1 2 3 4 5 Initial Cost After tax lease payment Forgone tax shield Forgone salvage value Column Total (b). Determine Net Present Value of Leasing assuming payments are made annually and make a lease or buy decision.