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Nodhead College needs a new computer. It can either buy it for $ 3 1 0 , 0 0 0 or lease it from Compulease.

Nodhead College needs a new computer. It can either buy it for $310,000 or lease it from Compulease. The lease terms require Nodhead to make six annual payments (prepaid) of $74,000. Nodhead pays no tax. Compulease pays tax at 35%. 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 10%.
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.
What is the NPV for Compulease?
Note: Do not round intermediate calculations. Round your answer to the nearest whole number.
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.

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