You are deciding whether to lease or purchase a car. If you lease the car, your annual payments will be $7,400 for the next four years (due at year end) - these are the only payments related to the lease option and there is no depreciation in this case. If you buy the car, you will pay $30,000 to purchase the car. You estimate the car will have a resale value of $12,000 at the end of four years - again, there is no depreciation in this case. Assume the appropriate discount rate is 10%. i. [5 points) Should you lease or buy the car? ii. [3 points) To answer this question, assume the NPV of the lease cost is $24,000. At what resale value in four years would you be indifferent between buying and leasing? iii. [2 points) Instead of buying the car for your personal use, you are buying the car for your business. The annual lease payments of $7,400 can be deducted from taxable income, thus you can treat this as a reduction in your costs and thus will provide you with tax savings. If you purchase the car, you can depreciate the car straight-line to zero over four years. The purchase price of the car is $30,000 and the resale value is $12,000. Your marginal corporate tax rate is 40%. If you are acquiring the car for business, should you buy or lease the car