Should Toffler Institute lease or borrow to purchase the copier? Show all calculations to support your decision.

The Toffler Institute faces a sharp increase in the demand for photocopying, so management has determined that a new MEGACOPY 3000 copier is required, at a cost of $100,000. The machine can be sold for an expected value of $20,000 in five years. The Institute's bank will advance funds for the entire purchase price at a cost of 9% per annum, payable in equal installments at the end of each year, for a term of five years. Maintenance will be contracted out to a firm for $1,000 annually, payable at each year- end. Alternatively, the copler manufacturer is offering to lease the machinery to the Institute for five years, based on annual lease payments of $25,000, payable at the beginning of each year. The lessor arranges for maintenance at their expense, under the terms of the leasing agreement The company's cost of capital is 14% and its tax shields are realized at the end of the year. The machinery has a CCA rate of 25% The company's tax rate is 30%. Required: Should Toffler Institute lease or borrow to purchase the copier? Show all calculations to support your decision