Question 9 (7 points) Listen Amaya Gaming Corp. must replace its existing photocopying equipment that has a book value of $12,500. New equipment with a useful life of 5 years will cost $95,000 and this amount can be borrowed from the local bank at 7 percent interest with annual payments at the end of the year. The CCA rate on the equipment would be 20 percent. The equipment will be could be salvaged for $24,000. Amaya could also lease the equipment with annual lease payments for the first three years of $21,000, then $17,000 for the last two years, all payable at the beginning of each year. The firm's weighted average cost of capital is 14 percent, and its marginal tax rate is 40 percent. Calculate the NPV of the purchase and lease options (after-tax basis). Should Amaya Gaming lease or purchase the equipment? Question 9 (7 points) Listen Amaya Gaming Corp. must replace its existing photocopying equipment that has a book value of $12,500. New equipment with a useful life of 5 years will cost $95,000 and this amount can be borrowed from the local bank at 7 percent interest with annual payments at the end of the year. The CCA rate on the equipment would be 20 percent. The equipment will be could be salvaged for $24,000. Amaya could also lease the equipment with annual lease payments for the first three years of $21,000, then $17,000 for the last two years, all payable at the beginning of each year. The firm's weighted average cost of capital is 14 percent, and its marginal tax rate is 40 percent. Calculate the NPV of the purchase and lease options (after-tax basis). Should Amaya Gaming lease or purchase the equipment