would not be incurred if the pump is leased. The lease rate would be $210,000 per year, payable at the end of each y 12 percent. Question 4 Determine the present value of after-tax operating cost of owning the pump. 132,482157,459145,723125,472 Question 5 Determine the present value of the pump's salvage value. Determine the present value of depreciation tax shield. 259,457455,470526,262588,807 Question 7 Determine the present value of the after-tax annual lease payments. Question 8 Determine the net advantage of leasing the pump (NAL). 554,485554,485422,478422,478 Question 9 Should Hydrolift lease the pump? Yes No