Usesadiscountrate of 15%% for assessingll newinvestments Is subjectto an incometax rate of 25.5% Howard Peckerd's equipment costs $125,000 and is expected to directly generate net new Gross Margins $50,000 per year. This transaction would not impact fixed costs. The Lease from Howard Packard i. Hes a duration of 5 years ii. Hes an annual lease payment of $30,000 (before tax] Hi. Requires no Down Payment (no initial investment) . The Financing Option from Howard Packard equires no down payment, i.e. it is financed 100%% through debt, at 8% annual interest, with nual principal and interest payments. The loan will be repaid in full in 5 years (5 total d-of-year payments)- ii. The useful life of the asset is 5 years, i.e. after 5 years it has no remaining value. iii. CCA ( depreciation for tax purposes) is an equal $25,000 for each of the 5 years of the Fassets useful life. acrosofts equipment costs $150,000 and is expected to directly generate net new Gross Margins of 5,000 per year The Lease from Macrosoft i. Has a duration of 5 years ii. Has an annual lease payment of $38/000 (before tax) iii. Requires no Down Payment (no initial investment] The Financing Option from Macrosoft i- Requires a $15,000 down-payment, i.e. it is financed 90%% through debt, at 9% annual interest, with annual principal and interest payments. The loan will be repaid in full in 5 years (5 total end- of-year payments). ii. The useful life of the asset is 5 years, i.e. after 5 years it has no remaining value. iii. CCA ( depreciation for tax purposes) is an equal $30,000 for each of the 5 years of the assets useful life