Turner plc is considering whether to buy a machine costing £1,000 through a three-year loan with interest at 14 per cent per year. The machine would have zero scrap value at the end of its three-year life. Alternatively, the machine could be leased for £320 per year, payable in arrears. Corporate tax is payable at 30 per cent and capital allowances are available over the life of the machine on a 25 per cent reducing balance basis. Calculate whether Turner should lease or buy the machine.