BUY OR LEASE The are two options to buy or lease a new ride, with a...

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BUY OR LEASE The are two options to buy or lease a new ride, with a 10 year useful life. For simplicity, assume the following: The figures provided may or may not be relevant. You have to exercise professional judgement. Calculate the PV CCA tax shields for the lease and the buy options. The net annual operating cash flows are provided after-tax.Additional cells might or might not be needed to fill in the table. Leasing the ride would cost $90,000 at the beginning of each year.No other expenses. Whichever option they choose, they are expecting additional ticket sales that will result in net after-tax cashflows of $75,000 a year from the ride. Requirement: Create a DCF analysis of both options. Calculate the NPV, IRR, MIRR, and PI for each project. Use the table below as a guidance. I need to see how you arrive at each annual cash flow so do not give me just a number. That's why I am providing you a table as a template so you can clearly show your work. Points will be deducted if cells do not have formulas or it is not clear how you got a number. Lease Ride Annual lease payments PURCHASE NEW Ride Purchase price (new) $500,000 $90,000 Maintenance per year $20,000 Net annual operating cash flows (after-tax) $55,000 Training expense (ONE $32,000 TIME only in year 5) Tax rate: 30% CCA rate 20% Salvage value in 10 years Discount rate (WACC) $75,000 6.1% Net annual operating cash flows (after-tax) $55,000 Useful life (years) 10 Required #1 - Complete the following capital budgeting analysis. 10 marks Option #1 CASH FLOW ITEM 0 1 Year 2 3 4 5 6 7 8 Net After-Tax Cash Flows BUY OR LEASE The are two options to buy or lease a new ride, with a 10 year useful life. For simplicity, assume the following: The figures provided may or may not be relevant. You have to exercise professional judgement. Calculate the PV CCA tax shields for the lease and the buy options. The net annual operating cash flows are provided after-tax.Additional cells might or might not be needed to fill in the table. Leasing the ride would cost $90,000 at the beginning of each year.No other expenses. Whichever option they choose, they are expecting additional ticket sales that will result in net after-tax cashflows of $75,000 a year from the ride. Requirement: Create a DCF analysis of both options. Calculate the NPV, IRR, MIRR, and PI for each project. Use the table below as a guidance. I need to see how you arrive at each annual cash flow so do not give me just a number. That's why I am providing you a table as a template so you can clearly show your work. Points will be deducted if cells do not have formulas or it is not clear how you got a number. Lease Ride Annual lease payments PURCHASE NEW Ride Purchase price (new) $500,000 $90,000 Maintenance per year $20,000 Net annual operating cash flows (after-tax) $55,000 Training expense (ONE $32,000 TIME only in year 5) Tax rate: 30% CCA rate 20% Salvage value in 10 years Discount rate (WACC) $75,000 6.1% Net annual operating cash flows (after-tax) $55,000 Useful life (years) 10 Required #1 - Complete the following capital budgeting analysis. 10 marks Option #1 CASH FLOW ITEM 0 1 Year 2 3 4 5 6 7 8 Net After-Tax Cash Flows