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Ajax is considering leasing a $900,000 equipment. Five annual payments of $190,000 are due in advance. Ajax's required rate of return is 12% and has

  1. Ajax is considering leasing a $900,000 equipment. Five annual payments of $190,000 are due in advance. Ajax's required rate of return is 12% and has a 35% tax rate. The asset is in the 25% CCA class. The half year rule applies and CCA is taken in year 0. After the fifth year, the asset becomes worthless. Determine the NPV of the lease.

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