Question 2 (20 marks) A machine costs $630,000 and will be depreciated in a straight-line manner over its 3-year life. It will have no salvage value. The lessee can borrow at 8%. The corporate tax rate is 16% for both companies. a. What set of lease payments will make the lessee and the lessor equally well off? (10 marks) b. Assume that the lessee pays no taxes and the lessor is in the 16% tax bracket. For what range of lease payments does the lease have a positive NPV for both parties? (10 marks)