Columbia Mills Inc (CMI) is planning to either lease a computer system or buy it from the manufacturer. the computer can be purchased for 2.2 million. the purchase would be financed by a bank term loan for 2.2 million, the loan would be repayable in 5 equal years. Installments of 565,604 each payable at year end. the computer would be depreciated at an annual rate of 400,000 for 5 years. Columbia mills marginal tax rate is 44% Columbia Mills can also lease this computer system for 5 years for an annual lease payment of 551000 payable at year end. under either the purchase plan or the lease plan the computer manufacturer would be willing to provide maintenance services for 5 years for 22000 annually. If the equipment is leased, the investment tax credit would be passed along with CMI. a) Calculate the annua; interest payments for the bank loan. b) Which equipment use alternative appears to be more desirable on a net present value basis? Assume that the salvage value is risky as the firm's average risky cash flow. Columbia mills marginal cost of capital is 10%. c) What qualitative factors should be considered before CMI decides lease or to borrow and buy?