The foliowing data apply to the next fotar quesestions: Waiton Publiahing Company (WPC) is evaluating a potential lease agreement on a printing press that costs $500,000 and talls into the MACRS 3-year clasn. The depceciation rates are 33.33%,44.45%,14.81%, and 7.41%. Tho firm can borrow at an 8 percent rate on a 4 -yent amortized foon. If WPC decided to borrow and buy rather than lease. The prens has a 4year economic life, and its estimated residual value it $25,000 at the end of Year 4 . If WPG buys the press, if would purchase a maintenance contract that cotts $10,000 net year, payoble at the beginning of each year. The tease terms, which include maintenance, cail for a $145,000 fease payment at the beginning of ench year, Assime that WPC's tax rate is 30 percent and tho lessor is in the 40 percent tax bracket. Further, the lessor's imvestment alternatives of similar risk yiold 5 percent before taxes. What is WPC "s present value of owning? $807,189 $817,204 $376,839 $374,831 $829,668 $861,555 $374,831 $376,839 $655,265 $217,289 What is the Net Adwantske to Leasing? 1) 528,897 2) $2,008 3) $0 4) $37.231 5) $16,794 Should the lessor write the lease? 1) Not write the lease; its NPV is 570,998. 2) Be indifferent between the lease and the alternative investment. 3) Write the lease; it has an IRR of 5.39 percent. 4) Not write the lease; it has an IRR of 5.39 percent. 5) Write the lease; its NPV is $12,233