Question: Your firm is considering leasing a new robotic milling control system. The lease lasts for 4 years. The lease calls for 5 payments of $280,000

Your firm is considering leasing a new robotic milling control system. The lease lasts for 4 years. The lease calls for 5 payments of $280,000 per year with the first payment occurring at lease inception. The system would cost $900,000 to buy and would be straight-line depreciated to a zero . The firm can borrow at 10%, and the corporate tax rate is 35%. What is the NPV of the lease?

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