An asset costs $690,000 and will be depreciated in a straight-line manner over its three-year life....

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An asset costs $690,000 and will be depreciated in astraight-line manner over its three-year life. It will have nosalvage value. The lessor can borrow at 5.2 percent and the lesseecan borrow at 7.7 percent. The corporate tax rate is 25 percent forboth companies.
a. What would the lease payment have to be to make both thelessor and lessee indifferent about the lease? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)
b. Assume that the lessee pays no taxes and the lessor paystaxes. For what range of lease payments does the lease have apositive NPV for both parties? (Enter your answers from lowest tohighest. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)

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An asset costs $690,000 and will be depreciated in astraight-line manner over its three-year life. It will have nosalvage value. The lessor can borrow at 5.2 percent and the lesseecan borrow at 7.7 percent. The corporate tax rate is 25 percent forboth companies.a. What would the lease payment have to be to make both thelessor and lessee indifferent about the lease? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)b. Assume that the lessee pays no taxes and the lessor paystaxes. For what range of lease payments does the lease have apositive NPV for both parties? (Enter your answers from lowest tohighest. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)