ABC needs a new machine to replace one of its old machines. The new machine costs $32,500 and has CCA rate of 20%. The salvage value is $4,500 at the end of year 9. ABC has many assets in the asset class and the UCC is expected to be greater than $4,500. Its cost of debt and tax rate are 8% and 15% respectively. XYZ, a leasing company, offers ABC a 9-year lease with annual lease payment of $4,000. The machine is the only asset in the asset class. Its cost of debt and tax rate are 4% and 30% respectively. a) Calculate the NPV of leasing for ABC and XYZ. b) What are the minimum and maximum annual lease payments that make leasing acceptable to both?