Leland Pharmaceuticals develops both over-the-counter (OFC) and prescription medicines. it is organized into two divions. which are evaluated as investment centers. The cost of capital used in evaluating the divisions is 6 percent. A local engineering firm has developed and patented a process that significantly shortens packaging times and costs: The engineering firm has offered to either sell the patent to Leland's OTC Division or lease the exclusive sights to the process (The process is not usable in the Prescription Division). The lease (and the estimated economic life of the process) is eight years. If purchased, the technology would cost $4.0 million. An eight-year lease would require annual payments of $1.020.000. The division manager of C estimates that annual income using the process fbefore considering any depteciation or lease payments) would be $18 millon. The investment for OIC (before considering any impact from the new technology) is $72 million. Assume that the patent would be amortized on a straight ine basis if purchased. ignore any income tax effects. Required: 0. Suppose the manager of OTC is evaluated using return on irvestment (ROD). Will the manager prefer to lease or puichase the technology? b. Suppose the managet of OrC is evaluated using residual income. Will the manager prefer to lease or purchase the technology? c. Suppose the manager of OTC is evaluated using return on investment (RO). What is the lease payment that would make the manager indifferent between leasing and parchasing the technology? d. Suppose the manager of OTC is evaluated using residual income. What is the lease payment that would make the manager inditferent between leasing and purchasing the technology? Complete this question by entering your answers in the tabs below. Assume that the patent would be amortized on a straight-line basis if purchased. Ignore any income tax effects. Required: a. Suppose the manager of OTC is evaluated using return on investment (ROI). Will the manager prefer to lease or purchase technology? b. Suppose the manager of OTC is evaluated using residual income. Will the manager prefer to lease or purchase the techno c. Suppose the manager of OTC is evaluated using return on investment (ROI). What is the lease payment that would make th manager indifiterent between leasing and purchasing the technology? d. Suppose the manager of OTC is evaluated using residual income. What is the lease payment that would make the manage indifferent between leasing and purchasing the technology? Complete this question by entering your answers in the tabs below. Suppose the manager of OTC is evaluated using return on investment (ROI). Will the manager prefer to lease or purchase the technology? Note: Enter your answers as a percentage rounded to 2 decimal places (1.e.,32.12). Assume that the patent would be amortized on a straight-line basis if purchased, Ignore any income tax effects. Required: a. Suppose the manager of OTC is evaluated using return on investment (ROI). Will the manager prefer to lease or purchase the technology? b. Suppose the manager of OTC is evaluated using residual income. Will the manager prefer to lease or purchase the technology? c. Suppose the manager gf OTC is evaluated using return on investment (ROI). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? d. Suppose the manager of OTC is evaluated using residual income. What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? Complete this question by entering your answers in the tabs below. Suppose the manager of orc is evaluated using residual income. Will the manager prefer to lease or purchase the technology? Note: Enter your answers in thousands of dollars. Assume that the patent would be amortized on a straight-line basis if purchased. Ignore any income tax effects. Required: o. Suppose the manager of OTC is evaluated using return on investment (ROI). Will the manager prefer to lease or purchase the technology? b. Suppose the manager of OTC is evaluated using residual income. Will the manager prefer to lease or purchase the technology c. Suppose the manager of OTC is evaluated using return on investment (ROI). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? d. Suppose the manager of OTC is evaluated using residual income. What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? Complete this question by entering your answers in the tabs below. Suppose the manager of OTC is evaluated using return on investment (ROI). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? Note: Do not round intermediate calculations. Enter your answer in thousands of dollars rounded to the nearest whole dollar amount: Assume that the patent would be amortized on a straight-line basis if purchased, lgnore any income tax effects. Required: o. Suppose the manager of OTC is evaluated using return on investment (ROI). Will the manager prefer to lease or purchase the technology? b. Suppose the manager of OTC is evaluated using residual income. Will the manager prefer to lease or purchase the technology c. Suppose the manager of OTC is evaluated using return on investment (ROI). What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? d. Suppose the manager of OTC Is evaluated using residual income. What is the lease payment that would make the manager indifferent between leasing and purchasing the technology? Complete this question by entering your answers in the tabs below. Suppose the manager of OTC is evaluated using residual income. What is the lease payment that would make the manager Indifferent between leasing and purchasing the technology? Note: Enter your answer in thousands of dollars. Round your final answer to the nearest whole dollar amount