Use the information below for the next five questions: Ginger Company is negotiating a lease for five new tractor/trailer rigs with Beta Leasing Inc. Ginger has received its best offer from Best Built Trucks for a total price of $1.5 million. The terms of the lease offered by Beta International Inc call for a payment of $250,000 at the beginning of each year of the 5-year lease. As an alternative to leasing, the firm can borrow from a large insurance company and buy the trucks. The $1 million would be borrowed on a simple interest term loan at a 8 percent interest rate for 5 years. The trucks fall into the MACRS 5-year class and have an expected residual value of $100,000. The depreciation rates are 20.00%, 32.00%, 19.20 %, 11.52%, 11.52% and 5.76%. Maintenance costs would be included in the lease. If the trucks were owned, a maintenance contract would be purchased at the beginning of each year for $10,000 per year. Ginger plans to buy a new fleet of trucks at the end of the fifth year. Beta Leasing Inc has a 30 percent federal-plus-state marginal tax rate, while Singer has a total tax rate of 40 percent. What is Ginger's present value of leasing? -$587,378 -$684,373 $684,373 -$732,681 $732,681