Omni Enterprises is considering whether to borrow funds and purchase an asset or to lease the asset under an operating tease arrangement. If it purchases the asset, the cost will be $12,000. It can borrow funds for four years at 9 percent interest. The asset will qualify for a 25 percent CCA. Assume a tax rate of 35 percent The other alternative is to sign two operating teases, one with payments of S11,500 for the first two years and the other with payments of $15.500 for the last two years. The leases would be treated as operating leases. a. Compute the aftertax cost of the lease for the four years. (Negative answers should be indicated by a minus sign. Round the final answers to nearest whole dollar) Afhertax Year 5 1 2 b. Compute the annual payment for the loan. Use Anbendix D. (Round the final answer to nearest whole dollar) Annual payment $ c. Compute the amortization schedule for the loan. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Ending b. Compute the annual payment for the loan. Use Andix D. (Round the final answer to nearest whole dollar) Annual payment c. Compute the amortization schedule for the loan. (Do not round intermediate calculations. Hound the final onswers to the nearest whole dollar) Beginning Annual Payment $ Hayat Principal Ending Balance $ Year 1 2 3 $ d. Compute the present value of the capital cost aliowance. (Do not round intermediate calculations, Round the final sauwers to the nearest whole dollar) PVICCA) e. Compute the attentax cost of the borrow.purchase alternative. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Year 1 after a cost of bor purchase 5 d. Compute the present value of the capital cost allowance (Do not round intermediare chiulotions. Round the fine nuwers to the nearest whole dollar) PVICCA) e. Compute the aftertax cost of the borrow purchase attentive. Do not round intermediate calculations, Round the final news to the nearest whole dollar) Atent of Year 2 f. Compute the present value of the aftertax cost of the two alternatives (Round Intermediate calculations and round the final answers to the nearest whole dollar.) 5 5 Horrow/Purchase g. If the objective is to minimize the present value of altertax casts, which alternative should be selected? @ Leasing Borrow/Purchase