Car Cleaners needs a new steam finishing machine that costs $100,000. The company is evaluating whether it should lease or purchase the machine. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and then sold, because the firm plans to move to a new facility at that time. The estimated value of the equipment after 3 years is $30,000. A maintenance contract on the equipment would cost $3,000 per year, payable at the beginning of each year. Alternatively, the firm could lease the equipment for 3 years for a lease payment of $29,000 per year, payable at the beginning of each year. The lease would include maintenance. The firm is in the 20% tax bracket, and it could obtain a 3-year simple interest loan, interest payable at the end of the year, to purchase the equipment at a before-tax cost of 10%. If there is a positive Net Advantage to Leasing the firm will lease the equipment. Otherwise, it will buy it. Assume MACRS rates for Years 1 to 4 are 0.3333, 0.4445, 0.1481, and 0.0741. a.) Figure the annual cash flows, then the Present Value of the cash flow stream under both scenarios. b.) Compare these amounts to determine the Net Advantage to Leasing (NAL). c.) Should Car Cleaners buy or lease the tools? *Show all calculations (not on spreadsheets)* The interest rate on the loan helps you determine the discount.