Question: Please show work. Answer should be $115,412 but not sure how you get this. 4) Your firm is considering leasing a new radiographic device. The

Please show work. Answer should be $115,412 but not sure how you get this.

4) Your firm is considering leasing a new radiographic device. The lease lasts for three years. The lease calls for four payments of $25,000 per year with the first payment occurring immediately. The computer would cost $140,000 to buy and would be straight-line depreciated to a zero salvage value over three years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 12%. The corporate tax rate is 40%. a. What is the NPV of the lease relative to the purchase?

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