Vertial Landscaping needs a piece of equipment that costs $12,000. Vertial can either lease the equipment or borrow $12,000 from a local bank and buy the equipment. Assume that Vertial's tax rate is 20% and that the equipment's depreciation would be $6,000 per year. If the company leased the asset on a 2-year lease, the payment would be $6,480 at the beginning of each year. If Vertial borrowed and bought, the bank would charge 8% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. What is the Net Advantage of Leasing? Should Vertial lease or buy the equipment? 1) $292.78 Lease 2) -$219.58 Lease 3) $243.98 Lease 4) -$263.50 Buy 5) $243.98 Buy