Using the following for PPL Inc. answer questions 13 to 17 below: PPL Inc.'s current total assets are equal to $11,780,000 and its current equity amount is equal to $4.125.000 The company wants to invest in a new machine that costs $3,250,000. It is considering either leasing or purchasing it. If it leases the machine, the lease would not be capitalized and would induce an annual payment of $780,000 for 5 years. However, if it is purchased, PPL Inc. would take a 5 years simple loan from London bank at 9% interest rate paid annually. Assume that the machine is depreciated using straight line method and that tax rate is 40% 13. What is PPL's current debt ratio? * 64.98% O 35.01% 64.98% O 55.96% O 45.69% 14. If the machine was purchased, by how much would its debt ratio change? O (10.58%) O (9.82%) O 14.05 o 7.57% 15. Which of the following is CORRECT? Debt ratio (after lease) Debt ratio (after purchase) Debt ratio (after lease) = Debt ratio (after purchase) 16. If PPL Inc. chooses option 1, what will be its total tax saving (from interest and depreciation) each year? * O $196,000 $377,000 O $180,000 O $261,000 17. If PPL Inc. chooses option 2, what will be its net cash flow during year 2? * O $558,000 $785,200 O $690,000 O $468,000