your firm is considering leasing a new computer the lease lasts for 9 years the lease calls for 9 payments of $1,000 per year. the computer would cost $7650 to buy and would be straight line depreciated to a zero salvage value is negligible because of technological obsolescence. the firm can borrow at a rate of 8%. The corporate tax rate is 30%.

a) what is the after tax cash flow from leasing (relative to purchasing) in year 0?

b) what is the after tax cash flow from leasing (relative to purchase) in years 1 through 9?

c)what is the appropriate discount rate for valuing the lease?