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An asset costs $825,000 and will be depreciated in a straight-line manner over its threeyear life. It will have no salvage value. The corporate tax

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An asset costs $825,000 and will be depreciated in a straight-line manner over its threeyear life. It will have no salvage value. The corporate tax rate is 22 percent and the appropriate interest rate is 7 percent. a. What would the lease payment have to be to make both the lessor and lessee indifferent about the lease? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Assume that the lessee pays no taxes and the lessor is in the 22 percent tax bracket. For what range of lease payments does the lease have a positive NPV for both parties? (Enter your answers from lowest to highest. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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