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AMR Co. can either buy new equipment for $80,000 or lease it with 4 annual...

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AMR Co. can either buy new equipment for $80,000 or lease it with 4 annual payments (prepaid) of $22,000.The equipment will have no salvage value at the end of 4 years and will be depreciated using the straight-line method (with the first depreciation taken in year 1). The company pays tax at 35 percent and uses a 10 percent discount rate. What is the NPV of the lease? Multiple Choice -$20,695 O O $3,846 $5,638 O O $7,027 $27,827 O

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