Please explain each step! I think I know how to do the first one but after that I am lost. Thank you!

The S Company is considering the acquisition of a new processor used in its operation. The processor has an installed cost of $53,000 and is expected to have a useful life of 5 years. If purchased, the firmwould borrow the entire $53,000 at an interest rate of 8%. The processor would be depreciated over a 5 year ACRS life to a zero book value, but it is estimated that it could be sold for $8,000 after 5 years. A capital budgeting analysis indicates that purchase of the processor has a positive NPV. Alternatively, S Company can lease the processor for the 5 year period for an annual lease payment of $13,500. If the processor is leased, annual operating expenses of $2,200 will be paid by the lessor. If the equipment is purchased, the firm will incur this expense. S Company's cost of capital is 12% and its marginal tax rate is 35%.

If S Company borrows to purchase the processor, what is the annual loan payment?

• $14,469
• $11,814
• $10,752
• $13,274

If S Company borrows to purchase the processor, the interest paid on the loan in year 2 is:

• $2,779
• $3,517
• $3,095
• $3,271

If S Company borrows to purchase the processor, total tax deductible expenses for year 3 are:

• $17,514
• $16,067
• $16,957
• $16,623

If S Company borrows to purchase the processor, the net cost of owning for year 3 is:

• $9,007
• $10,301
• $9,851
• $9,401

The present value of the costs of owning is:

• $42,463
• $43,275
• $43,925
• $41,082

The present value of the cost of leasing the processor is:

• $40,656
• $41,753
• $41,560
• $41,011