Please show your work and all formulas used.

2. A corporation is considering purchasing a machine that has an 8-year life and will save the firm $4,500 per year in net operating costs. The machine would be depreciated on a straight-line basis to a zero salvage value. The firm has a 34% tax rate and a 12% p.a. required rate of return on this project. 2.a If the machine costs $25,000, what is its NPV and payback period? 2.b If the machine can be leased for $4,000 per year payable at the end of each year, should the firm buy the machine or lease it