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Darnold depreciated Corporation at a has CCA decided rate of top 25 purchase percent and new will be machine worthless that costs after $6.7 four

Darnold depreciated Corporation at a has CCA decided rate of top 25 purchase percent and new will be machine worthless that costs after $6.7 four million.years.million. The The The machine corporate\ taxrate is 35 percent. The Sur Bank has offered Darnold a four-year loan for $6.7\ Ofg\ percent on the\ repayment schedule outstanding is four yearly principal repayments ofj $1,675, 000 each and year. ani Both interest principal charge\ balance of the loan at the beginning ofe\ Corporation offers to lease the\ repayments and interest are due at the end of each year. Cal Leasing\ year are due at the beginning of each\ same machine to Darnold. Lease payments of $2.0 million per\ ofi the four years of the lease.\ Calculate the NPV (10 Marks)\ Should Darnold lease the machine or buy it? (1 Mark)\ C\ What is the annual lease payment that will make Darnold indifferent between leasing and buying?

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