I need help with this finance homework question PLEASE! Any help greatly appreciated!

Your firm has been presented a leasing alternative on a new pizza dough machine. The annual lease payments would be $135m. Tax rate is 40%. The lease is for ten years. Determine the ATCFs for the lease. Tax shield will occur in the year after the lease payment is made.

To determine the After-Tax Cash Flows (ATCFs) for the lease, we will need to calculate the tax shield and subtract it from the lease payments.

The tax shield represents the tax savings from deducting the lease payments as an expense. It is calculated by multiplying the lease payment by the tax rate.

Step 1: Calculate the tax shield.
Tax Shield = Lease Payment x Tax Rate
Tax Shield = $135m x 0.40
Tax Shield = $54m

Step 2: Calculate the ATCFs.
ATCFs = Lease Payment - Tax Shield
ATCFs = $135m - $54m
ATCFs = $81m

Therefore, the After-Tax Cash Flows (ATCFs) for the lease are $81 million per year.