A firm needs to obtain a specialized machine, which would cost $$590000$ to buy. It would be depreciated at the rate of $$59000$ per

year for both accounting and tax purposes, and could be sold in five years for $$295000.$ The firm has the option of leasing the machine

for five years. This would be an operating lease, with payments of $$82600$ per year at the beginning of each year. The company is

subject to a tax rate of $40\%$ and its pre$-$tax borrowing cost is $7\%.$ What is the total undiscounted after$-$tax net cash flow associated

with this proposed lease?

$-$$$70800$

$-$$$611240$

$-$$$120360$

$$224200$