arrange for a lease financing plan. Assume that these facts apply: 1. The equipment falls in the MACRS 3-year class. 2. Estimated maintenance expenses are $48,000 per year. 3. The firm's tax rate is 34%. 4. If the money is borrowed, the bank loan will be at a rate of 12%, amortized in six equal installments at the end of each year. 5. The tentative lease terms call for payments of $280,000 at the end of each year for 3 years. The lease is a guideline lease. 6. Under the proposed lease terms, the lessee must pay for insurance, property taxes, and maintenance. line, Sadik would show the cost of the used equipment at Year 3 and its depreciation expenses starting at Year 3 . a. What is the net advantage of leasing? Should Sadik take the lease? Do not round intermediate calculations. Round your answer to the nearest dollar. Net advantage of leasing \$ Since the cost of leasing the machinery is I) than the cost of owning it, the firm should the equipment. the NPV of a negative cash flow stream is less negative at high discount rates.)