Read the case study below and answer the questions that follow: An online shopping retailer is considering acquiring three new forklifts to help cope with an increase in the volume of goods moving through one of its main warehouses. The forklifts cost R452 000 each. The retailer has sufficient cash resources for the outright purchase of the forklifts. However, using this cash to purchase the forklifts will adversely affect the retailer's ability to meet its other Required: 3.1 Calculate the net advantage of leasing (NAL) and advise the management of the company on whether they should lease or buy the forklifts. 3.2 Determine the lease payment that would make the company indifferent whether leasing and buying. 3.3 In a meeting to discuss the acquisition of the forklifts, one of the directors argued that it does not matter whether leasing is cheaper than buying, as the business should purchase the forklifts. The director's argument was that leasing is tantamount to paying the lessor's instalments on the forklift yet the lessor, not the company, will end up owning the forklift at the end of the lease contract. The director also argued that leasing does not improve the company's balance sheet as it is considered as a form of off-balance sheet finance. Discuss the validity of the director's arguments. Read the case study below and answer the questions that follow: An online shopping retailer is considering acquiring three new forklifts to help cope with an increase in the volume of goods moving through one of its main warehouses. The forklifts cost R452 000 each. The retailer has sufficient cash resources for the outright purchase of the forklifts. However, using this cash to purchase the forklifts will adversely affect the retailer's ability to meet its other Required: 3.1 Calculate the net advantage of leasing (NAL) and advise the management of the company on whether they should lease or buy the forklifts. 3.2 Determine the lease payment that would make the company indifferent whether leasing and buying. 3.3 In a meeting to discuss the acquisition of the forklifts, one of the directors argued that it does not matter whether leasing is cheaper than buying, as the business should purchase the forklifts. The director's argument was that leasing is tantamount to paying the lessor's instalments on the forklift yet the lessor, not the company, will end up owning the forklift at the end of the lease contract. The director also argued that leasing does not improve the company's balance sheet as it is considered as a form of off-balance sheet finance. Discuss the validity of the director's arguments