Your company needs a new corporate jet for 5 years. You can either buy or lease it. If you lease it, you need to make a lease payment at the beginning of each year. All prices are in $ million.

	A	B
1	Price of jet	16
2	Resale value after 5 years	8
3	Annual lease payment	1.6
4	Number of lease payments	5
5	Interest rate	12%

Part 1

What is the net advantage to leasing, i.e., the incremental NPV of leasing relative to buying (in $ million)?