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A florist can purchase a delivery truck from her local GMdealerfor $25,000. The GM dealer will also lease the truck for$6,100per year over five years. The truck has an expected life ofsevenyears. The truck is expected to be worth $2,500 (after?tax) infiveyears and the florist has the option to buy it at fair marketvalueat that time.If the florist wants to purchase the truck, she must borrowthemoney from Simple Loans Bank at a current rate of 10%. Theflorist’s tax rate is 34%. For simplicity assumestraight?linedepreciation(a) Find out the incremental cash flows for the leasingdecision with and without salvage value(b) Which financing option is better (with and withoutsalvagevalue)?(c) What would be the break?even before?tax lease rentalwithand without salvage value?