Mitata Company is considering the purchase of new manufacturing equipment that will cost $35,000 (including shipping and installation). Mitata can take out a four-year, $35,000 loan to pay for the equipment at an interest rate of 8.40%. The loan and purchase agreements will also contain the following provisions: - The annual maintenance expense for the equipment is expected to be $350. - The equipment has a four-year depreciable life. The Modfied Accelerated Cost Recovery System's (MAcRs) depreciation rates for a three-year asset are 33.33%,44,45%,14.81%, and 7.41%, respectively. - The corporate tax rate for Mitata is 40%. (Note: Do not round intermed ate calculations.) Note: Mitata Company is allowed to take a full-year depreciation tax-saving dectuction in the first year. Based on the preceding information, complete the following tables: Thus, the net present value (NPV) cost of owning the asset will be: $22,520 $50,213 $23,020 $27,854 Mita Company has been offered an operating lease on the same equipment. The four-vear lease requires end-cf-year payments of $1,400, and the firm will have the option to bur the asset in four vears for $7,700. The firm will want to use the equloment longer than four years, so it plans to exercise this option. Al mointenance will be provided by the lessor. What is the NPV cost of leasing the asset? $11,626 $9,701 $2,256 132,714 Shiould triata lease or bury the equipment? now wase