1. Spectrum Corporation is considering leasing a new equipment. The lease lasts for 8 years. The lease calls for 8 payments of $142,000 per year with the first payment occurring immediately. The equipment would cost $1,020,000 to buy and would be straight-line depreciated to a zero salvage value over 8 years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 6%. The corporate tax rate is 25%. The corporate tax rate is 25%. What is the NPV of the lease relative to the purchase?

   		$75,683.48
   		$84,201.67
   		-$59,573.24
   		-$67,328.20
   		$61,443.79