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Do not give only 1 explanation i need this all 2. I have the answer in bold below but I need calculation details for them

Do not give only 1 explanation i need this all 2.

I have the answer in bold below but I need calculation details for them all.

36. You are the manager of a sales division. You are considering leasing a fleet of cars for your staff. You can buy the cars for $300,000 or you can lease them for eight years at $60,000 per year. The company faces a tax rate of 40% and a CCA rate of 10% on vehicles. If the company buys the cars and finances the purchase with a loan, they will pay 7% after-tax in interest. Assume that after the term of the lease is over, the salvage value of the cars will be zero. What is the NPV of the lease?

A. $9,340 B. $16,754 C. $29,521 D. 34,195

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37. You are the CFO of a company. You are considering leasing photocopiers from the manufacturer instead of purchasing them for $200,000. You can borrow at after-tax interest of 9% and the corporate tax rate is 35%. The lease payment will be $50,000 for five years. At the end of the five years, the photocopiers will be worthless. Photocopiers are depreciated at 20% CCA rate. What is the NPV of the lease? A. $27,304 B. $39,582 C. $52,395 D. $73,586

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