A detailed explanation of the answer (ASAP)

Redstone Corporation is considering a leasing arrangement to finance some special manufacturing tools that it needs for production during the next three years. A planned change in the firm's production technology will make the tools obsolete after 3 years. The firm will depreciate the cost of the tools on a straight-line basis. The firm can borrow $4,800,000, the purchase price, at 10 percent on a simple interest loan to buy the tools, or it can make three equal end-of-year lease payments of $2,100,000. The firm's tax rate is 40 percent.

1 consider the information above what is the NPV of the lease analysis?

2. Consider the information above what will be the amount of annual depreciation expense for each of the three years?

3. What will be the amount of annual depreciation tax saving for each of the three years?

4. What is the NPV of the Loan (buy) analysis?

5. What is the pattern of annual tax saving on lease payment corresponding to year 0 year 1 year 2 and year 3?

6. If the balloon method is followed then what would be the amount of annual interest payment in each of the three years after year-0?

7. If the balloon method of loan repayment methodology is followed then what would be the amount of annual interest payment in each of the three years after year-0?

8. If the balloon method of loan repayment methodology is followed then the principal of the loan would be repaid in how many installments? (one) (two) (three) (four)

9. What is the pattern of annual lease payment corresponding to year 0 year 1 year 2 and year 3?

10. If the balloon method of loan repayment methodology is followed then the amount of interest tax saving in each of the three years after year-0 will be?