Problem 4 (25 points) ABC, Inc. needs some new equipment. The equipment would cost $200,000 if purchased and would be depreciated straight-line over 4 years. No salvage is expected. Alternatively, the company can lease the equipment for $42,000 per year. The marginal tax rate is 35%. b) Compute NPV. Assume that the pre-tax cost of debt is 11%. (10 points)