United Enterprise wishes to acquire a $120,000 equipment which it plans to use for eight years. At the end of this time, the machine's residual value will be $24,000. For tax purpose, the asset has to be fully depreciated over a six year period using the straight-line method. The company can use either a "true" lease or debt financing. Lease payments of $18,000 at the beginning of each of the eight years would be required. If debt financed, the interest rate would be 15 percent, and debt payments would be due at the end of each of the eight years. The company is in a 40 percent tax bracket. Which method of financing has the lower present value of cash outflows