Exercise 2 Leasing Spit Firm I is a transportation company . It needs new vans . It has two opportunities either case or buy The leave contract is It years . The before - tax lease payment is 190 per year claimed CHILL at the beginning of the year ) for one van . If firm I houses the vans , it will incur every year a before - tax operating cost per van with ING of 150 ( claimed at the end of the YEAR ) The cost of one van is 20 0 . If firm I marys the rana , it will incur every year before - tax operating out per van worth some of WHO claimed at the end of the year ) The salvage value of our Van after In years is in Am . The depreciation amount of one Van is It over the Ist year and THAN For the luth year claimed at the beginning of the year ) The risk - free rate is The. The corporate tax rate is 25 0 1) Compute the after - tax cash flow from casing one van at time ( 1 4 and In CE CE CE CE 2) Compute the after - tax cash flow from buying one van at time ( 1 9 , and IN ( OF OF OF OF 1 Compute the net present value of leasing one van ( PV ) 1 Compute the net present value of buying one van INMy 5 ) Does firm I choose to buy or lease the rank