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Instructor-created question 55 Question Help Q Suppose Proctor & Gamble (P&G) is considering purchasing $16 million in new manufacturing equipment. If it purchases the equipment, it will depreciate it for tax purposes on a straightline basis over ve years, after which the equipment will be worthless. It will also be responsible for maintenance expenses of $1 .00 million per year, paid in each of years 1 through 5. It can also lease the equipment under a true tax lease for $4.4 million per year for the ve years, in which case the lessor will provide necessary maintenance. Assume P&G's tax rate is 40%, its borrowing cost is 6.5%, and that the tax deductibility benet of the lease payments occurs at the same time as when the lease payment is made. (Note: the help le for this question does not make this timing assumption) a. What is the NPV associated with leasing the equipment versus borrowing and buying it? b. What is the break-even lease ratethat is, what lease amount could P&G pay each year and be indifferent between leasing and buying through borrowing? a. What is the NPV associated with leasing the equipment versus borrowing and buying it? The NPV is $ . (Round to the nearest dollar.) b. What is the break-even lease ratethat is, what lease amount could P&G pay each year and be indifferent between leasing and buying through borrowing? The break-even lease rate is $ (Round to the nearest dollar.)