c$)$ A company is considering the lease of equipment which has a purchase price of Tsh $350,000.$ The equipment has an estimated economic life of $5$ years. The written down depreciation of $25\%$ is allowed. The leases Rental per year are Tsh $120,000,000$ assume the corporate tax is $50\%$ if the borrowing rate before tax is $16\%.$

Required:

Show if it is advantageous for the company to lease the equipment. Ignore tax shield on depreciation after five years.