As a financial analyst for Muffin Construction, you have been asked to recommend the method of financing the acquisition of new equipment needed by the firm. The equipment has a useful life of 8 years. If purchased, the equipment, which costs $800,000, will be depreciated under MACRS rules for 7-year class assets. If purchased, the needed funds can be borrowed at a 10 percent pretax annual rate. Muffin's weighted after-tax rate of capital is 19 percent. The actual salvage value at the end of 8 years is expected to be $10,000. Muffin's marginal ordinary tax rate is 40 percent. Annual, beginning-of-year lease payments would be $170,000. Use Table II and Table 9A-3 to answer the questions. a. Compute the net advantage to leasing. Round your answer to the nearest dollar. Use minus (-) sign for negative value, if any. $ b. Should Muffin lease or own the equipment? The asset should be -Select- 4 As a financial analyst for Muffin Construction, you have been asked to recommend the method of financing the acquisition of new equipment needed by the firm. The equipment has a useful life of 8 years. If purchased, the equipment, which costs $800,000, will be depreciated under MACRS rules for 7-year class assets. If purchased, the needed funds can be borrowed at a 10 percent pretax annual rate. Muffin's weighted after-tax rate of capital is 19 percent. The actual salvage value at the end of 8 years is expected to be $10,000. Muffin's marginal ordinary tax rate is 40 percent. Annual, beginning-of-year lease payments would be $170,000. Use Table II and Table 9A-3 to answer the questions. a. Compute the net advantage to leasing. Round your answer to the nearest dollar. Use minus (-) sign for negative value, if any. $ b. Should Muffin lease or own the equipment? The asset should be -Select- 4