wath is not cleared

L is salvage value

OC is operating cost

C is cost

Q5-Leasing versus purchasing as following alternatives. Purchase C= 20,000 OC=$3000 OC=$3,500 OC-$4000 $1000 Lease OC=$2000 OC=$4,500 OC=$5000 OC=$6000 L=0 0 1 2 3 The purchase depreciate starting in year 0 for 5 yeas using MACRS. Use MIN.DCFROR of 15%,and effective tax is 40%, which alternative is more economical by using incremental NPV and PW cost analysis