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Using the following information for Howland Co., answer questions 18, 19 and 20 below: Howland...

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Using the following information for Howland Co., answer questions 18, 19 and 20 below: Howland Co needs a new machine that costs $180,000. The expected life time of the machine is 3 years and it falls into the MACRS 3 years class. It has the following options: Option 1: To purchase the machine by taking a 3 years simple loan at 9% interest rate (before tax). The interests are payable at the end of each year. Option 2: To lease the machine by paying $34,000 at the beginning of each year for 3 years. The machine's salvage value is $35,000, and the maintenance costs are equal to $2.800 payable at the beginning of each year. If the machine is leased, it would include maintenance service Assume that tax rate is 35% and that MACRS rates for years 1 to 4 are 0.3333, 0.4445, 0.1481, and 0.0741. 18. What is the cost of owning the machine? * 0 ($113,283) 0 ($109,346) O ($116,063) O ($130,906) 19. What is the cost of leasing the machine?* O O ($74,560) ($79,780) O O ($68,850) ($62,703) 20. What is the NAL?* O O $50,838 $46,643 O $53,618 O $62,055

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