A machine costs $650,000 and will be depreciated in a straight-line manner over its 3-year life. It will have no salvage value. The lessor can borrow at 7% and the lessee can borrow at 9%. The corporate tax rate is 34% for both companies. How does the fact that the lessor and lessee have different borrowing rates affect the calculation of the NAL?- b. What set of lease payments will make the lessee and the lessor equally well off? + Assume that the lessee pays no taxes and the lessor is in the 34% tax bracket. For what range of lease payments does the lease have a positive NPV for both parties? a. c. A machine costs $650,000 and will be depreciated in a straight-line manner over its 3-year life. It will have no salvage value. The lessor can borrow at 7% and the lessee can borrow at 9%. The corporate tax rate is 34% for both companies. How does the fact that the lessor and lessee have different borrowing rates affect the calculation of the NAL?- b. What set of lease payments will make the lessee and the lessor equally well off? + Assume that the lessee pays no taxes and the lessor is in the 34% tax bracket. For what range of lease payments does the lease have a positive NPV for both parties? a. c