Your company is considering acquiring a new piece of equipment. The equipment can be purchased for $100,000 or leased for $25,000 per year for five years. The company's cost of capital is 10%. Perform a lease vs. buy analysis.

Requirements:

1. Calculate the total cost of leasing the equipment.
2. Determine the total cost of buying the equipment considering depreciation (straight-line over 5 years, no salvage value).
3. Analyze the present value of the lease payments.
4. Compare the NPV of leasing vs. buying.

Evaluate the financial and non-financial factors influencing the decision.