> The Randolph Teweles Company (RTC) has decided to acquire a new truck. One alternative is to lease the truck on a 4-year guideline contract for a lease payment of $10,000 per year, with payments to be made at the beginning of each year. The lease would include maintenance. Alternatively, RTC could purchase the truck outright for $40,000, financing the purchase by a bank loan for the net purchase price and amortizing the loan over a 4-equal payments, at an interest rate of 10% per year. Under the borrow-to- purchase arrangement, RTC would have to maintain the truck at a cost of $1,000 per year, payable at year end. The truck falls into the MACRS 3-year class to a zero book value at the end of year four. It has an expected market value of $10,000 after 4 years, when RTC plans to replace the truck irrespective of whether it leases or buys. RTC has a marginal federal- plus- states tax rate of 40%. a) Carry Financial Lease analysis to advise (RTC) to buy-borrow or to lease the new truck? b) Calculate the Net Advantage to Lease (NAL) If any? > The Randolph Teweles Company (RTC) has decided to acquire a new truck. One alternative is to lease the truck on a 4-year guideline contract for a lease payment of $10,000 per year, with payments to be made at the beginning of each year. The lease would include maintenance. Alternatively, RTC could purchase the truck outright for $40,000, financing the purchase by a bank loan for the net purchase price and amortizing the loan over a 4-equal payments, at an interest rate of 10% per year. Under the borrow-to- purchase arrangement, RTC would have to maintain the truck at a cost of $1,000 per year, payable at year end. The truck falls into the MACRS 3-year class to a zero book value at the end of year four. It has an expected market value of $10,000 after 4 years, when RTC plans to replace the truck irrespective of whether it leases or buys. RTC has a marginal federal- plus- states tax rate of 40%. a) Carry Financial Lease analysis to advise (RTC) to buy-borrow or to lease the new truck? b) Calculate the Net Advantage to Lease (NAL) If any