Problem $4(20$ points$)$

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Your company is considering leasing or purchasing an asset that costs $$1,000,000.$ The asset, if purchased, will be depreciated on a straight$-$line basis over $6$ years to a zero residual value. A leasing company is willing to lease the asset for #$300,000$ per year; the first payment on the lease is due at the time the lease is undertaken $($i$.$e$.,$ year $0)$ and the remaining $5$ payments are due the beginning of years $15.$ Your company has a tax rate Tc$=40\%$ and can borrow at $10\%$ from the bank.

a$)$ Should your company lease or purchase the asset $($output template provided$)?$

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b$)$ What is the maximum lease payment it will agree to pay?

$($Please workout in excel and show formula's and excel functions$)$