A company can either purchase or lease a $650,000 machine with a useful life of 8 years. The machine could be fully depreciated on a straight-line basis over its useful life, at the end of which it would have no salvage value. The lease would involve 8 annual installments of $90,000, each due at the end of the year. The company's pre-tax cost of debt is 10% and the tax rate is 20%. What is the expected increase in the firm's debt capacity if it chooses to buy instead of lease? $650,000.00 $470,807.24 $507,140.89 $413,758.00 $610,580.39