Suppose Procter and Gamble$($P&G$)$ is considering purchasing $$16$ million in new manufacturing equipment. If it purchases the$$ equipment, it will depreciate it on a$$ straight$-$line basis over the five$$ years, after which the equipment will be worthless. It will also be responsible for maintenance expenses of $$1\mathrm{.}50$ million per year.$$ Alternatively, it can lease the equipment for $$3\mathrm{.}6$ million per year for the five$$ years, in which case the lessor will provide necessary maintenance. Assume$$ P&G$?$s tax rate is $40\%$ and its borrowing cost is $\%7\mathrm{.}0$a$.$ What is the NPV associated with leasing the equipment versus financing it with the lease equivalent$$ loan?

b$.$ What is the$$ break$-$even lease ratethat $$is$,$ what lease amount could$$ P&G pay each year and be indifferent between leasing and financing a$$ purchase?