Question: PLEASE. NO EXCEL, please show written formulas and WITHOUT EXCEL FUNCTIONS THANKS Lokit Inc. is deciding whether to buy or lease equipment. The equipment costs

PLEASE. NO EXCEL, please show written formulas and WITHOUT EXCEL FUNCTIONS THANKS

Lokit Inc. is deciding whether to buy or lease equipment. The equipment costs $2.5 million and it will be worth zero after three years. The company's borrowing rate is 4.5%. The lease payments are $900,000 million per year for three years, payable at the beginning of each year. The equipment qualifies for a CCA rate of 24% per year. The assets pool remains open and the company's tax rate is 29%. 1) Should the company buy or lease the asset? 2) Assume the lessor's tax rate is 29%. Is the lease profitable to the lessor? 3) What payment would leave the company indifferent to leasing or not leasing

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