The Redding Company is considering the acquisition of a machine that costs $1,000,000 if bought today. The company can buy or lease the machine. If it buys the machine, the machine would be depreciated as a 3-year MACRS asset and is expected to have a salvage value of $50,000 at the end of the 5-year useful life. If leased, the lease payments are $240,000 each year for 4 years, payable at the beginning of each year. The marginal tax of the Redding Company is 30% and the cost of capital is 12%. Use the MACRS rates provided below and assume that the lease is a net lease, that any tax benefits are realized in the year of the expense, and that there is a $90,000 investment tax credit. Year Rate 1 33.33% 2 44.45% 3 14.81% 4 7.41% Calculate the depreciation for each year in the case of the purchase of the machine. Calculate the direct cash flows from leasing initially and for each of the 5 years. Calculate the adjusted discount rate. Calculate the NPV of the lease. Calculate the amortization of the equivalent loan.