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The Mikata Corporation is considering leasing a machine. The machine would cost $226,000 to buy and...

The Mikata Corporation is considering leasing a machine. The machine would cost $226,000 to buy and it would be depreciated straight-line to zero over five years. The machine will have zero salvage value in five years. Mikata can lease the equipment for $49,000 per year for five years, with the lease payment due at the beginning of each year. The firm can borrow at a rate of 6%. The firm has a tax rate of 25%. What is the NPV of the lease relative to the purchase? -$7,326.15 -$8,129.33 $6,935.58 $7,801.69 $8,432.74

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