Quantitative Problem 3: Findley Fumiture Company must install $7.0 million of new equipment in one of its plants. It can obtain a bank loan for 100% of the required amount. Alternatively, management believes it can arrange a lease. Assume that the following facts apply: 1. The equipment falls in the MACRS S-year dass. The applicable MACRS rates are 21%,32%,20%,12%,11%, and 4%. 2. The lease includes maintenance, whereas if the equipment is purchased, it would require maintenance provided by a service contract for $170,000 per year, payable at the end of the year. 3. Findley's federal-plus-state tax rate is 40%. 4. If the money is borrowed, the bank loan will be at a rate of 9%, amortized in 5 equal installments to be paid at the end of each year. 5. The tentative lease terms call for end-of-year payments of $1.25 million per year for 5 years. 6. At the end of the lease term, the equipment will have an estimated salvage value of $800,000. At that time, Findley plans to replace the equipment regardless of whether the firm leases or purchases it. What is the net advantage to leasing? Enter your answer in thousands. For example, an answer of $1,234,000 should be entered as 1,234 . Do not round intermediate calculations. Round your answer to the nearest thousand dollars. Enter your answer as a positive number. $ thousand Quantitative Problem 2: Findley Furniture Company must install $5.8 million of new equipment in one of its plants. It can obtain a bank loan for 100% of the required amount. Alternatively, management believes it can arrange a lease. Assume that the following facts apply: 1. The equipment falls in the MACRS 5-year class. The applicable MACRS rates are 21%,31%,20%,11%,10%, and 7%. 2. The lease includes maintenance, whereas if the equipment is purchased, it would require maintenance provided by a service contract for $130,000 per year, payable at the end of the year. 3. Findley's federal-plus-state tax rate is 45%. 4. If the money is borrowed, the bank loan will be at a rate of 8%, amortized in 5 equal installments to be paid at the end of each year. 5. The tentative lease terms call for end-of-year payments of $1.25 million per year for 5 years. 6. At the end of the lease term, the equipment will have an estimated salvage value of $900,000. At that time, Findley plans to replace the equipment regardless of whether the firm leases or purchases it. What is the firm's cost of leasing the equipment? Enter your answer in thousands. For example, an answer of $1,234,000 should be entered as 1,234. Do not round intermediate calculations. Round your answer to the nearest thousand dollars. Enter your answer as a positive number. thousand Athount, Alternativehy, management believes it can arrange a lease. Assume that the following facts apply: 1. The equipment falls in the MACRS 5 -year class, The appbeable MACRS rates are 20%,32%,1996,12%,11%, and 6%. 2. The fease includes maintenance, whereas if the equipment is purchased, it would requie maintenance provided by a service contract for 5150,000 per yeai, payatile at the end of the year. 3. Findley's foderal-plus-state tax rate is 45%. 4. If the money is borrowed, the bank loan will be at a rate of 8%, amortized in 5 equal installments to be paid at the end of each year. 3. The tentative lease terms call tor end-of-year payments of $1.10 million per year for 5 years. 6. At the end of the lease term, the equipment will have an estimated salvage value of $950,000. At that tame, Findiey plans to replace the equipment regaretiens of whether the firm leases or purchases it. What is the firm's cost of owning the equipment? Enter your answer in thousands. For example, an answer of $1,234,000 should be entered as 1,234 . Do not round Intermediafe calculations, Round your answer to the nearest thousand dollars. Enter your answer as a positive number. thousand