Nodhead College needs a new computer. It can either buy it for $$265,000$ or lease it from Compulease. The lease terms require

Nodhead to make six annual payments $($prepaid$)$ of $$65,000.$ Nodhead pays no tax. Compulease pays tax at $30\%.$ Compulease can

depreciate the computer for tax purposes straight$-$line over five years. The computer will have no residual value at the end of year $5.$

The interest rate is $7\%.$

a$.$ What is the NPV of the lease for Nodhead College?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to

the nearest whole number.

b$.$ What is the NPV for Compulease?

Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

c$.$ What is the overall gain from leasing?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to

the nearest whole number.