PLEASE SHOW ALL WORK. This is my second time asking. Thank you.

9. (15) A shop is under consideration with a 15 year life and with expenses of $640,000 per year and will likely produce revenue of $2,800,000 per year. You can lease the location for $1,680,000 per year for 15 years with payments at the beginning of each year, or you can purchase the location for $12,600,000 which would have zero salvage value and a straight line depreciation expense of $840,000 per year for each of the 15 years. You can obtain financing with debt at an interest rate of 12 percent, or from cash which is earning you currently 12 percent. The business pays taxes at a rate of 33.3 percent (1/3). a. What is the net present value of the shop if you used a lease? b. What is the net present value of the shop if you used a purchase? c. Do wish to open the shop? If so, which do you prefer the lease or the purchase AND why? 9. (15) A shop is under consideration with a 15 year life and with expenses of $640,000 per year and will likely produce revenue of $2,800,000 per year. You can lease the location for $1,680,000 per year for 15 years with payments at the beginning of each year, or you can purchase the location for $12,600,000 which would have zero salvage value and a straight line depreciation expense of $840,000 per year for each of the 15 years. You can obtain financing with debt at an interest rate of 12 percent, or from cash which is earning you currently 12 percent. The business pays taxes at a rate of 33.3 percent (1/3). a. What is the net present value of the shop if you used a lease? b. What is the net present value of the shop if you used a purchase? c. Do wish to open the shop? If so, which do you prefer the lease or the purchase AND why