el A me types mon 2 The Tomer Institute faces a sharp increase in the demand for photocopying, so management has determined that a new MEGACOPY 3000 copler is required at a cost of $100,000. The machine can be sold for an expected value of $20,000 in five years red ed out of The Institute's bank will advance funds for the entire purchase price at a cost of 9% per annum payable in equal installments at the end of each year for a term of five years. Maintenance will be contracted out to a firm for $1,000 annually, payable at each year-end ag Dion Alternatively, the copier manufacturer is offering to lease the machinery to the Institute for five years, based on annual lease payments of $25,000 payable at the beginning of each year. The lessor arranges for maintenance at their expense, under the terms of the leasing agreement The company's cost of capital is 14% and its tax shields are replized at the end of the year. The machinery nas a CCA rate of 25%. The company's tax rate is 30% Required: Should Toffler Institute lease or borrow to purchase the copler? Show all calculations to support your decision 7 A- B 1 - Maximum file size 16MB, maximum number of files 1