Coffeemania is considering leasing a coffee making machine for its recently opened store. The lease agreement requires $6$ lease payments in the amount of $$5,100$ per year paid at the beginning of each year. Each coffee making machine's purchase price is $$32,000,$ and it depreciates straight$-$line to zero value over the duration of the lease.

Coffeemania pays a $34\%$ tax rate on its corporate income. The company's annual borrowing rate is $5\%.$

Coffeemania needs to figure out whether leasing, rather than buying the coffee making machine, is the right way to go$.$ The necessary calculations show that the incremental cash flow for "Year

$0"$ equal: Select $]$

positive $($i$.$e$.,>$$$0)$

What does this cash

flow incl negative $($i$.$e$.,$$$0)$

Coffeemania is considering leasing a coffee making machine for its recently opened store. The lease agreement requires $6$ lease payments in the amount of $$5,100$ per year paid at the beginning of each year. Each coffee making machine's purchase price is $$32,000,$ and it depreciates straight$-$line to zero value over the duration of the lease.

Coffeemania pays a $34\%$ tax rate on its corporate income. The company's annual borrowing rate is $5\%.$

Coffeemania needs to figure out whether leasing, rather than buying the coffee making machine, is the right way to go$.$ The necessary calculations show that the incremental cash flow for "Year

$0"$ equals

flow include $/$ doesn't include?

It

It

It

It

It

It

O$"$ equals $[$ Select $]$

What does this cash flow$),$ the depreciation tax shield $($cash outflow$),$ the after$-$tax lease payment $($cash inflow$),$ the after$-$tax lease payment $($cash outflow$).$

What does this cash

flow include $/$ doesn't include?

I Select $]$ includes

I doesn't include

It

It

It

Select $]$

$$28,634$

$$31,570$

$$32,000$

$$33,338$

$$35,000$

$$38,000$

$$38,696$

$$44,000$

What does this cash the purchase price $($cash inflow$),$ the purchase price $($cash outflow$),$ the depreciation tax shield $($cash inflow$),$ the depreciation tax shield $($cash outflow$),$ the after$-$tax lease payment $($cash inflow$),$