The Totiler Institute faces a sharp increase in the demand for photocopying so management has determined that a new MEGA COPY000 copier is required at a cost of $100.000 The machine can be sold for an expected value of $20,000 in five years The Institute's bank will advance funds for the entire purchase price at a cost of 9% per annum payable equal installments at the end of each year for a term of five years. Maintenance will be contracted out to a firm for $1.000 annually. payable at each year-end Alternatively, the copie manufacturer is offering to lease the machinery to the Institute for five years, based on anase payments or 525 000 payable at the beginning of each year The lessor atranges for maintenance at their expense, under the terms of the leasing agreement The company's cost of capital is 14% and its tax shields are realized at the end of the year The machinery as a OCA ate of 25 The compami's tax rale is 30% Required: Should Tomer Institute lease or borrow to purchase the copier? Show all calculations to upport your decision