Cherry Pickings Farms Inc. is considering whether to borrow funds to purchase a mac! or lease the asset under an operating lease arrangement. The lease would be from the annual lease payments payable at the beginning of each of the next seven years of s& the time horizon for the analysis.) As an alternative, the owner has approached his bank to enquire about a loan to purch machine. The cost of the machine is $54,000 and, at the end of seven years, the mark estimated to be $15,000. The bank has informed him that they would charge 9 percent annually, at the end of each year). The equipment has a CCA rate of 25 percent. The benefits of any tax shields are realiu year. The company's tax rate is 30 percent. Cherry Pickings Farms Inc.'s cost of capita 19 Required: Complete the following table and use the space below to support your answers. Leasing alternative: Present value of the lease alternative: Discount rate used: Borrow-to-purchase alternative: Present value of borrow-to-purchase: Cherry Pickings Farms Inc. is considering whether to borrow funds to purchase a mac! or lease the asset under an operating lease arrangement. The lease would be from the annual lease payments payable at the beginning of each of the next seven years of s& the time horizon for the analysis.) As an alternative, the owner has approached his bank to enquire about a loan to purch machine. The cost of the machine is $54,000 and, at the end of seven years, the mark estimated to be $15,000. The bank has informed him that they would charge 9 percent annually, at the end of each year). The equipment has a CCA rate of 25 percent. The benefits of any tax shields are realiu year. The company's tax rate is 30 percent. Cherry Pickings Farms Inc.'s cost of capita 19 Required: Complete the following table and use the space below to support your answers. Leasing alternative: Present value of the lease alternative: Discount rate used: Borrow-to-purchase alternative: Present value of borrow-to-purchase