A company is considering a leasing arrangement to finance some equipment that it needs for the next 4 years. The equipment will be obsolete and worthless after 4 years. The firm will depreciate the cost of the equipment on a straight-line basis over its 4-year life. It can borrow $2,400,000, the purchase price, at 10% and buy the equipment, or it can make 4 equal end-of-year lease payments of $1,050,000 each and lease it. The loan obtained from the bank is a 4-year simple interest loan, with interest paid at the end of the year. The firm's tax rate is 40%. Annual maintenance costs associated with ownership are estimated at $120,000, but this cost would be borne by the lessor if it leases. What is the net advantage to leasing (NAL-i.e. by how much is leasing more or less costly than borrowing and buying)? (10 pts)