Question: 2. Nodhead college needs a new computer. You can either buy it for $250,000 or lease it from compulease. the lease terms require the college

2. Nodhead college needs a new computer. You can either buy it for $250,000 or lease it from compulease. the lease terms require the college to make six annual payments (prepaid) of $55,000. The college space no tax, the leasing company pays tax at 35%. The leasing company can depreciate the computer for tax purposes at a CCA rate of 30%, and will close the asset pool at the end of 60 year. The computer will have no residual value at the end of Year 5 the interest rate is 8%. a. What is the NPV of the lease for the college? b. What is the NPV for the leasing company? c. What is the overall gain from leasing?

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