Financial Option 2: Lease of $25 Million in Equipment Rationale for investment: The businesss current equipment is efficient, but it uses a lot of electricity. The production line also creates significant waste material, including waste plastics. The business is looking into leasing newer, more environmentally friendly equipment that will still allow it to be at least as efficient in production as it is now. Assumptions to consider: Annual cash flows generated with equipment: $4 million Discount rate is 12% 15-year useful life No salvage value.

NPV???