INFORMATION: Trencor Limited intends purchasing a machine to expand its production capacity. It is considering whether to purchase or lease the machine. The following information relates to each option: Borrow and buy The machine will cost R600 000 and a five-year loan at 20% will be taken to fund the purchase. The machine will have a five-year useful life and will be depreciated on a straight-line basis down to a NIL book value. The company will pay maintenance costs of R60 000 per year for each of the five years. Lease The machine can be leased for R240 000 per year for five years. The company can exercise an option to acquire ownership of the asset at the end of the lease period for a payment of R50 000 . Other information: The company tax rate is 30% REQUIRED: (Round off all Rand amounts to the nearest whole number) 4.1 Compile the amortization table for the borrow and buy option. (6 Marks) 4.2 Calculate the after-tax cash outflows relating to the borrow and buy option. (6 Marks) 4.3 Compare the after-tax cash outflows relating to the leasing option and the borrow and buy option. (6 Marks) (use discount factors as found in your module guide to four decimal places) 4.4 Discuss with reasons which option should be chosen. (2 Marks)