$(40$ points$)$ Mowbot Company is evaluating the production of a new part. It would require the acquisition of a special CNC lathe costing $$375,000.$ The machine would be used for five years then sold for $$135,000.$

In addition to the sales quotation, the sales representative has quoted a five year lease for $$81,000$ per year, with the first year's payment due on delivery.

a$.(25$ points$)$ Based on pretax analysis, should Mowbot choose leasing or buying? Mowbot's MARR is $20\%.$

b$.(15$ points$)$ The added profit from producing the new part is estimated at $$96,000$ per year. Based on your choice of leasing or buying, is this a good project?