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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. 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 if the asset had a pretax salvage value of $8,000 (ignoring any possible risk differences)? $2,986.99 -$4,748.62 $4,511.88 -$3,680.75 $3,475.57

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