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Southern First Bank is considering a leveraged lease agreement involving MRI equipment with Prisma Hospital. The bank ( 40 percent tax bracket) will be the

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Southern First Bank is considering a leveraged lease agreement involving MRI equipment with Prisma Hospital. The bank ( 40 percent tax bracket) will be the lessor: Prisma Hospital, the lessee (0 percent tax bracket); and a large South Carolina pension fund, the lender. Prisma is seeking $40 million, and the pension fund has agreed to lend the bank $20 million at 9 percent. The bank has agreed to repay the pension fund $2 million of principal each year plus interest. (The remaining balance will be repaid in a balloon payment at the end of the 5 th year) The equipment will be depreciated on a straight-line basis over a 5 -year estimated useful life with no expected salvage value. Assuming that Prisma has agreed to annual lease payments of $8 million, calculate the bank's cash outflow at time 0 . Your answer should have four decimal places. For example, for $10,000,000, enter 10,000,000.0000. Question 33 5pts . Continued from the previous question. Calculate the bank's cash outflow at time 1. Your answer should have four decimal places. For example, for $10,000,000, enter 10,000,000,0000

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