A firm is negotiating a lease on a new piece of equipment that would cost $1,000,000 if purchased. The equipment falls into the MACRS 3-year class. The depreciation would be 33%, 45%, 15%, and 7% for years 1, 2, 3, and 4 respectively. The equipment would be used for 3 years and sold. It is estimated that it would be sold after three years for $300,000. A maintenance contract on the equipment would cost $30,000 per year if purchased.

Conversely, the firm could lease the equipment for a lease payment of $290,000 per year. The lease payment would include maintenance.

The firm is in the 20% tax bracket, and it could obtain a loan to purchase the equipment at a before-tax rate of 10%.

What is the NAL?

Please show calculation. Thank you