Queens Limited, a sofa manufacturer, is looking to acquire new equipment for the production of a new product line, which has a required rate of return of 15% per annum. Queens can borrow at 12% per annum and buy the equipment outright for $600,000. The equipment has an expected life of 6 years and Queens will dispose the equipment after 6 years with an expected salvage value of $50,000. Alternatively, Queens can lease the equipment from Moe's Leasing for $120,000 p.a. for 6 years with premiums payable in advance. The applicable corporate tax rate is 30% and the equipment will be fully depreciated using a straight-line method over its expected life. When evaluating this finance lease, which of the following statements accurately describes a relevant cashflow at the end of year 6 (using the approach covered in lectures)? None of the other statements accurately describes a relevant cashflows at the end of year 6 on the evaluation of finance lease. $50,000 should be subtracted at the end of year 6 because of no proceeds are received from sale. $15,000 should be added at the end of year 6 because of the savings generated on tax, as tax would become payable on gains from sale. More than one of the other statements accurately describes a relevant cashflow at the end of year 6 on the evaluation of finance lease. $120,000 should be subtracted at the end of year 6 for the lease payment