Question 2 (50 marks) Fanny is the financial manager for Beta Corporation. She has been asked to perform a lease-versus-purchase analysis on a new printing machine. The machine costs $360,000 and will be depreciated by the straight-line method with zero residual value over 5 years. Alternatively, the company can lease the machine with year-end payments of $95,000 over 5 years. The company's tax rate is 35% and its before-tax cost of borrowing is 10%. Required: (a) Given the above information, calculate the net advantage to leasing (NAL) for Beta Corporation to obtain the new printing machine, assuming the company will use its own reserves rather than borrowing from the bank. Which alternative would you recommend? Explain. (b) Suppose only $300,000 purchase price of the machine is borrowed from Bank. Should Beta Corporation change its buy or lease decision on the printing machine? Discuss. machine, assuming the company will use its own reserves rather than borrowing from the bank. Which alternative would you recommend? Explain. (b) Suppose only $300,000 purchase price of the machine is borrowed from Bank. Should Beta Corporation change its buy or lease decision on the printing machine? Discuss. (c) Please comment on the remark Leasing is a zero sum game between the lessee and lessor. (d) Briefly discuss the reasons for firms to lease even if NALs are negative