Option 2- Lease the asset Time B-tax Tax Savings NCF DCF Present Period Lease on LP (@7%) Value Payments (See Note 3) 01234 50000 15000 -350000.935 32725 0000 15000 -350000873 -30555 50000 15000 -350000.816 28560 50000 15000 350000.763 -26705 NPV -S118545 Conclusion: Leasing is the lower cost alternative by $15729Option 2 - Lease the Asset Time Period B-tax Lease Payments Tax Savings on LP (See Note 3) NCF DCF (@ 7%) Present Value 0 1 -50 000 15 000 -35 000 0.935 -32 725 2 -50 000 15 000 -35 000 0.873 -30 555 3 -50 000 15 000 -35 000 0.816 -28 560 4 -50 000 15 000 -35 000 0.763 -26 705 NPV = -$118 545 Conclusion: Leasing is the lower cost alternative by $15 729