question is attached

Show work on D and E

Thank ya

Brad

Lewis Health System Inc. has decided to acquire a new electronic health record system for its hospital. The systemand, receives clinical data andLewis othercould patient information from TheRichmond equipment costs $1,000,000, if it were purchased, obtain a term loan for the full purchase price at a 10 percent interest rate. Although the equipment has a sixAs an alternative to the borrow-and-buy plan, the equipment manufacturer informed Lewis that Consolidated Leasing would be willing to write a four-year guideline lease on the a. What is the present value cost of owning the equipment? b. What is the present value cost of leasing the equipment? c. What is the net advantage to leasing (NAL)? d. Answer these questions one at a time to see the effect of the change on NAL. That is, starting with the original numbers you used for questions a. and b., what is the NAL if the: - interest rate increases to 12 percent - tax rate falls to 34 percent - maintenance cost increases to $25,000 per year - residual value falls to $150,000 - system price increases to $1,050,000 e. Do the changes in d. make leasing more or less attractive? Explain