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Plese show detailed solution: BMW is willing to invest in a new automated production channel with a cost of 600.000.000, the expected life of 12

Plese show detailed solution:

BMW is willing to invest in a new automated production channel with a cost of 600.000.000, the expected life of 12 years.

The tax rate is 25%, and BMW is considering whether to buy or lease the production Channel.

The request an offer from BBVA leasing services that requests an annual lease price of 65.000.000.

What would you advise them to do, explain all the calculation steps and what is the process?

The alternative would be to invest in the asset, by borrowing the money from Banco Santander at an annual interest rate of 5%

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