Omni Enterprises is considering whether to borrow funds and purchase an asset or to lease the asset under an operating lease arrangement. If it purchases the asset, the cost will be $48,000. It can borrow funds for four years at 11 percent interest. The asset qualify for a 25 percent CCA. Assume a tax rate of 35 percent The other alternative is to sign two operating leases, one with payments of $15,000 for the first two years and the other with payments of $18,500 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) Year 0 1 2 Artertax COM 5 15000 9750 13250 12025 6475 4 b. Compute the annual payment for the loan. Use Appendix D. (Round the final answer to nearest whole dollar) Annual payment 15474 c. Compute the amortization schedule for the loan (Do not round intermediate calculations, Round the final answers to the nearest whole dollar.) eginning Annual Annual Ending Year lance alance ayments Interest Principal c. Compute the amortization schedule for the loan (Do not round intermediate uniculations. Round the final answers to the nearest whole dollar) Year 1 2 Beginning talan 5 18000 37806 26491 191 Annual Payment 9 15474 15474 15474 Thala 3 3780 Aonal Interest 5 520 4159 2014 1532 epayments Principal 10154 05 12560 42 14674 d. Compute the present value of the capital cost allowance (Do not round intermediate calculations. Round the final answers to the nearest whole dollar) PVICCA) 12628 e. Compute the aftertax cost of the borrow.purchase alternative. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Year 1 2 Aftertax cost of borrow/purchase 5 4 f Compute the present value of the aftertax cost of the two alternatives. (Round intermediate calculations and round the final the nearest whole dollar.) Idle alternative. (Do not round Intermediate calculations. Round the final awwers to Altertascost of borrow/ purchase $ Year 1 2 3 4 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.) Present value Leasing Borrow/Purchase g. If the objective is to minimize the present value of aftertax costs, which alternative should be selected? O Leasing Borrow/Purchase