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b) Hasan entertainment is considering borrowing money at 11% and purchasing a machine that costs BDT. 3,50,000. The machine will be depreciated over five years

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b) Hasan entertainment is considering borrowing money at 11% and purchasing a machine that costs BDT. 3,50,000. The machine will be depreciated over five years by the straight- line methods ad will be worthless in five years. Hasan can lease the machine with the year- end payments of BDT 94,500. The corporate tax rate is 35%. Should Hasan buy or lease the machine? 6

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