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metro is thinking of leasing a new material

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metro is thinking of leasing a new material. The lease lasts for 8 years. The lease calls for 8 payments of $262,000 per year with the first payment taking place immediately. The material would cost 1,800,000 to buy and would be straight-line depreciated to a 0 salvage value over 8 years. The firm can borrow at a rate of 5 percent. The corporate tax rate is 25 percent. The actual pre-tax salvage value is 52,000. What would the NPV of the lease relative to the purchase be?