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Please use the following information to answer the next TWO questions. Your firm will either purchase or lease a new fabricator. If purchased, the fabricator will cost $704,000 and be depreciated for tax purposes on a straight-line basis over five years. The fabricator has no residual value at the end of the five years Your firm can also lease the fabricator for five years (payments are made at the start of the year). The firm can borrow at 15% pre-tax. 11. If the firm's corporate tax rate is 40%, what would the before-tax lease payment have to be to make your firm indifferent between leasing and buying the fabricator? A) $190,632 B) $207,788 C) $180,684 D) $175,199 E) None of the above. 12. Pretend now that your firm pays no taxes, but all other details are as given above. For the NAL to be equal to zero, what must be the total present value of all the lease payments? A) $704,000 B) $484,395 C) $923,065 D) There is not enough information to answer this question. E) None of the above