Springbean Coffee Manufacturers has discovered a new manufacturing process that will lead to the production of better tasting coffee in a highly competitive market. Springbean have the option of purchasing a new machine, which will reduce their costs by R9 750 per annum. The company can purchase the machine at a cost of R52 000 and the machine will be depreciated in full over its useful life of 4 years. The firm will be able to sell the machine for R7 000 after four years and expect to do so. It will cost the firm R3 000 per year to maintain the machine. Springbean will have to finance the purchase with a 12.5% four-year loan requiring equal end-of-year payments. Alternatively, Springbean can lease the same machine directly from the manufacturer at a cost of R22 100 per year, payable in advance. The lessor will be responsible for maintaining the machine. Springbean will exercise their right to purchase the machine for R10 000 upon termination of the lease. If Springbean has a cost of capital of 12% and pays tax at 30%, should they lease or buy the machine?