"Consider the following lease-versus-borrow-and-purchase problem: Borrow-and-purchase option: l. Jensen Manufacturing Company plans to acquire sets of special industrial tools with a four-year life and a cost of $200, 000, delivered and installed. The tools have a CCA rate of 30%. 2. Jensen can borrow the required $200, 000 at a rate of 10% over four years. Four equal end-of-year annual payments would be made in the amount of $63, 094 = $200, 000(A/P, 10%, 4). The annual interest and principal payment schedule, along with the equivalent present worth of these payments is 3. The estimated salvage value for the tool sets at the end of four years is $20, 000. 4. If Jensen borrows and buys, it will have to bear the cost of maintenance, which will be performed by the tool manufacturer at a fixed contract rate of $12, 000 per year. 1. Jensen can lease the tools for four years at an annual rental charge of $70, 000, payable at the end of each year. 2. The lease contract specifies that the lessor will maintain the tools at no additional charge to Jensen. Jensen's tax rate is 40%. Any gains will also be taxed at 40%. a) What is Jensen's PW of after-tax cash flow of leasing at I = 15%? b) What is Jensen's PW of after-tax cash flow of owning at I = 15%