Suppose Clorox can lease a new computer data processing system for $975,000 per year for ve years. Alternatively, it can purchase the system for $4.35 million. Clorox has a borrowing cost of 6% and a tax rate of 35%. Assume that the system will be obsolete at the end of ve years, and that the tax deductibility benet of the lease payments occurs at the time the lease payments are made. a. If Clorox will depreciate (for tax purposes) the computer equipment on a straight-line basis over the next ve years and if the lease qualies as a true tax lease, is it better to nance the purchase of the equipment or to lease it? h. Suppose that if Clorox buys the equipment, it will use accelerated depreciation for tax purposes. Specically, the CCA rate will be 45%. Assume that the fabricator has no residual value at the end of the ve years and you can use the PV(CCATS) formula. Compare leasing with purchase in this case. a. Choose the correct answer below. (Round to the nearest dollar.) 0 A- Lease the equipment because the NPV of the lease minus buy is $I:l. 3- Finance the purchase of the equipment because the NPVof the lease minus buy is $|:. b. Choose the correct answer below. (Round to the nearest dollar.) O A- Finance the purchase of the equipment because the NPVof the lease minus buy is $|:. O 3- Lease the equipment because the NPV of the lease minus buy is El