Kings Limited, a furniture manufacturer, is looking to acquire new equipment for the production of a new product line, which has a required rate of return of 17% per annum. Kings can borrow at 15% per annum and buy the equipment outright for $800,000. The equipment has an expected life of 8 years and Kings is going to dispose the equipment after 6 years with an expected salvage value of $160,000. Alternatively, Kings can lease the equipment from Moe's Leasing for $120,000 p.a. with premiums payable in advance. The applicable corporate tax rate is 40% and the equipment will be fully depreciated using a straight-line method over its expected life. Which of the following statements accurately describes a relevant cashflow at the end of year 6 on the evaluation of finance lease (using the approach covered in lectures)? O $16,000 should be added at the end of year 6 because of the savings generated (on tax payment) due to gain from sale. More than one of the other statements accurately describes a relevant cashflow at the end of year 6 on the evaluation of finance lease. $96,000 should be subtracted at the end of year 6 because no proceeds are received from sale. $40,000 should be subtracted at the end of year 6 because of loss from sale. None of the other statements accurately describes a relevant cashflows at the end of year 6 on the evaluation of finance lease