1. ABC is considering a leasing arrangement to finance some special manufacturing tools that is needed for production during the next four years. A planned change in the firms production technology will make the tool obsolete after 4 years. The firm will depreciate the cost of the tools on a straight-line basis. The firm can borrow $4,200,000, the purchase price, at 10% to buy the tools or make four equal end of the year lease payments of $2,250,000. The firms tax rate is 34% and the firms before-tax cost of debt is 10%. Annual maintenance costs associated with ownership are estimated at $275,000. Should the firm lease or buy? * Could you show the work on a spread sheet please.*