QUESTION 1 (20 Marks) REQUIRED: Study the information provided below and determine whether Albany Ltd should buy or lease the machine, by using the net advantage of leasing (NAL) method. INFORMATION: Albany Ltd wants to purchase a new machine for one of its bakeries. The cost of the machine is R600 000 and its useful life is expected to be 4 years. Albany Ltd has the option of taking out a loan at 20% to purchase the machine or to lease the machine. Annual instalments on this loan will amount to R231 777 and will be payable at the end of each year. Maintenance costs of R24 000 will be paid at the end of each year If the machine is leased, the lease payments will be R180 000 per year, payable at the end of the next 4 years.. The tax rate is 30% Your answer must include the following tables: 1.1 Amortisation schedule showing the interest and principal of the loan (7 marks) 1.2 The after tax outflows associated with borrowing and buying the machine (6 marks) 1.3 A comparison of the cash flows associated with leasing versus borrowing and buying (7 marks)