Problem $26-17$ Valuing financial leases

Nodhead College needs a new computer. It can either buy it for $$260,000$ or lease it from Compulease. The lease terms

require Nodhead to make six annual payments $($prepaid$)$ of $$64,000.$ Nodhead pays no tax. Compulease pays tax at $40\%.$

Compulease can depreciate the computer for tax purposes straight$-$line over five years. The computer will have no residual

value at the end of year $5.$ The interest rate is $10\%.$

a$.$ What is the NPV of the lease for Nodhead College?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your

answer to the nearest whole number.

b$.$ What is the NPV for Compulease?

Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

c$.$ What is the overall gain from leasing?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your

answer to the nearest whole number.

Answer is complete but not entirely correct.

I need help on B and C