Assume zero taxes. Equipment can be leased at $10,000 per year (first payment one year hence) for ten years or purchased at a cost of $64177. The company has a weighted average cost of capital of 15 percent. A bank has indicated that it would be willing to make a loan of $64,177 at a cost of 10 percent. The equipment will be used for ten years, There is zero salvage value

1) Should the company buy or lease?

2)Assume 20% taxes- should the company buy or lease ?