Craxton Engineering will either purchase or lease a new $752,000 fabricator. If? purchased, the fabricator will be depreciated on a? straight-line basis over seven years. Craxton can lease the fabricator for $129,000 per year for seven years.? Craxton's tax rate is 35%. ?(Assume the fabricator has no residual value at the end of the seven? years.)

a. What are the free cash flow consequences of buying the fabricator if the lease is a true tax? lease?

b. What are the free cash flow consequences of leasing the fabricator if the lease is a true tax? lease?

c. What are the incremental free cash flows of leasing versus? buying?