bank interest cost is 10%

Valesquez Ranches, Inc., wishes to use a new truck fueled by compressed natural gas that costs $80,000. The ranch intends to operate the truck for five years, at the end of which time it is expected to have a $16,000 residual value. The asset has a useful life of 4 years as far as tax is considered. The company uses a straight-line depreciation method and has a 30 percent tax rate. Two means of financing the new truck are available. A five-year, "net lease" arrangement calls for annual lease payments of $17,000, payable in advance. A debt alternative carries an interest cost of 10 percent. Debt payments will be made at the end of each of the five years. Using the present value of cash outflows method, determine the best financing alternative