L Borra Homework: Homework 8 Save Score: 0 of 1 pt 1 of 10 (9 complete HW Score: 5181% 5 18 of 10 pts P17-4 (similar to) Lease versus purchase Le Corporation is attempting to determine whether to lease or purchase archment. The form the best of debts currenty The armate and of the purchase was follows: Lease Annual and of year lease payments of 327.000 are required over the 3 years of All maintenance cose pad insurance and other costs will be borne by the The se wil he is option to purchase set for 55.500 a termination of the case in any max snel te worden under the open DOH Purchase Theth equipment costing S05.000, can be financed entry with a 14% ban ceaning anumang payment of $27.00 hores the cupant under MACRS sing warwcovery period (See for the applicable depreciation percent Them will pay $2.000 per year to video covers a mantenance consurance and thernests will be borne by the firm The firm plans to keep the equipment and use it beyond es 3-year recovery period Take Calutate the after a coufos cated win each atematice (Hint Because Insurance and other coses are bome by refom under both were the one can be grond here Calculate the present stue of each cash flow stream sing the after-tax cost of debt c. Which warativelser purchase would you recomand? Why Data Table on 4 Rounded Depreciation Percentages by Recovery Year Using MACHS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 1 33% 209 14% 104 454 TON a 15% 19 10 14 4 74 125 124 12% 3 125 PN ON 0 3 D% ON PS 7 8 44 OW 0 10 11 49 OK ons ht