Kusela Company is trying to decide whether to buy or lease a new automated machine to be used in the production of a new product. The new machine would cost $100,000 if purchased and would be used for ten years. The salvage value at the end of ten years is estimated at $20,000. The machine would be depreciated using the straight line method over a seven year period. The annual maintenance and operating costs would be $20,000. Annual revenues are estimated at $55,000. If the machine is leased, the company would need to pay annual lease payments of $20,700 The first lease payment and a deposit of $5,000 are due immediately. The last lease payment is paid at the beginning of Year 10. The deposit is refundable at the end of the tenth year. Kusela's cost of capital is 14%. Assume this is an operating lease and lease payments are due at the beginning of each year. Calculate the NPV for: a. The purchase option b. The Lease option c. Which is the better alternative