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18. A company needs to decide whether to purchase or lease new equipment. The equipment would cost $1,000,000 if purchased. The equipment would require annual

18. A company needs to decide whether to purchase or lease new equipment. The equipment would cost $1,000,000 if purchased. The equipment would require annual maintenance, and the present value of these annual maintenance costs is $50,000. Consider the following: PV of Lease Payments Tax Shield = $100,000; PV of Salvage Value = $100,000; PV of Lease Payments Before-tax = $400,000; PVCCATS = $250,000. What is the NAL?

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