Use the Table for the Question(s)below

question 1

Multiple Choice

Use the table for the question(s) below.
Your firm is a lessor that is planning to buy some new equipment and offer it to another firm through a lease arrangement.You have calculated the above cash flows for a potential lease you might offer.
-If your firm's borrowing cost is 3% and the tax rate is 45%,what is the NPV of buying and leasing?

• A)$20,479
• B)$15,069
• C)-$20,479
• D)-$15,069
• E)-$14,145

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