Quostion 4 [25 Marks] Question 4.1 (15 Marks) Tasty Ltd is a producer of vegetable juice. The management of the company has indicated that it wishes to obtain a new vegetable juicing machine which can either be bought or leased from its manufacturer. The juicer will cost R5 000 000 and will be depreciated over four years by means of the straight-line method. Financing for the machine can be obtained at an interest rate of 10% before tax, which is the same as the company's cost of debt. The juicer has a useful life cycle of five years; and is not expected to have any residual value at the end of its life cycle. Maintenance on the machine will amount to R600 000 per year, payable at the end of each year. The manufacturer offers the option of leasing the machine for R2 000 000 per year (payable at the end of each year) for five years after which the manufacturer will maintain ownership of the machine. Maintenance is included in the cost of the lease and Tasty is subject to a 30% tax rate. Required: Evaluate whether the company should lease, or borrow and buy the machine. Use the net advantage of leasing (NAL) approach