terms of the lease and of the purchase are as follows: option. insurance and other costs will be borne by the firm. The firm plans to keep the equipment and use it beyond its 3 -year recovery period. b. Calculate the present value of each cash outflow stream, using the after-tax cost of debt. c. Which alternative-lease or purchase-would you recommend? Why? a. The after-tax cash outflow associated with the lease in year 1 is $20720. (Round to the nearest dollar.) The after-tax cash outflow associated with the lease in year 2 is $ (Round to the nearest dollar.) The after-tax cash outflow associated with the lease in year 3 is $ (Round to the nearest dollar.) The after-tax cash outflow associated with the purchase in year 1 is 9 (Round to the nearest dollar.) terms of the lease and of the purchase are as follows: option. insurance and other costs will be borne by the firm. The firm plans to keep the equipment and use it beyond its 3 -year recovery period. b. Calculate the present value of each cash outflow stream, using the after-tax cost of debt. c. Which alternative-lease or purchase-would you recommend? Why? a. The after-tax cash outflow associated with the lease in year 1 is $20720. (Round to the nearest dollar.) The after-tax cash outflow associated with the lease in year 2 is $ (Round to the nearest dollar.) The after-tax cash outflow associated with the lease in year 3 is $ (Round to the nearest dollar.) The after-tax cash outflow associated with the purchase in year 1 is 9 (Round to the nearest dollar.)