QUESTION 17 Lease vs Buy Pt 5 Fran's Business has two options: (A) lease a $60,000 machine over a five-year period with an annual lease payment of $14,000; (B) borrow $60,000 amount from the bank over the five-year period to buy the asset. The bank would charge a 9% interest. Other financial assumptions are: (a) the company's income tax rate is 30%; (b) the capital cost allowance for the equipment is an even $12,000 per year, (c) the equipment has no residual value; What is the total of before-tax interest expenses expected for this loan over the entire 5 years? QUESTION 18 Lease vs Buy Pt 6 Fran's Business has two options: (A) lease a $60,000 machine over a five-year period with an annual lease payment of $14,000; (B) borrow $60,000 amount from the bank over the five-year period to buy the asset. The bank would charge a 9% interest. Other financial assumptions are: (a) the company's income tax rate is 30%; (b) the capital cost allowance for the equipment is an even $12,000 per year, (c) the equipment has no residual value: What is the total NPV of the financing option (a negative number)