UserInc. can either purchase a machine for $65,000 or lease it from GoldLease for $10,500 per year (paid at the beginning of each year) for 7 years. The machine will have a salvage value of $6,000 at the end of year 7. The CCA rate is 30% and the machine is the only asset in the asset class for User. Assume User's cost of borrowing is 8% and its tax rate is 25%.

a) What is the NPV of leasing the machine?

b) Assume that GoldLease has many other assets in the asset class with UCC of $13,753.46 at year 7, tax rate of 35% and cost of borrowing of 6%, find the minimum lease payment required by GoldLease.

Please provide solution by hand and not using excel if possible thank you