Ford Limibed needs to acqure equipment cosing R2 000 000 to expand their faclises in ordee to be more competive. The machine can be punchased or leased. The affer tax cost of the debt is 7% and the company is in the 28% tax bracket. The terms of the lease and punchase plans are as follows: Lease The leasing agreement would require annual end-ct.year payments of R3sS 600 over the five years. Service and mairtenance costs are R90 000 per arnum. According to the lesse agreement, Bese costs are shared equaly anongst Be lessee and the lessce and is not included in the annual lease payment of R335 600 . In addion, the lessee will exencise its opose to purchase the equiperven for R128 000 at the sermirasion of the lease. R.chase The cost could be finanoed with a five-year. 15% loan. recuirine ecual annual payments of RSS0 000. The company wil pay R18 000 per year for a service contract that covers Al costs. The stragheline method of sepecciasion is used. They plan to sell the machine for spares afee the five years foe RS0 000. Required: 4.1 Debermine the afher-tax cash sutflows and the net present value of the cash outlous under each alkemashe. (22 Maris] 42 Which athernative would you necommend and why? (3 Marks)|