B8. (Net advantage to leasing) Rashid Singh, the president of Surf-Side Beer Distributors of Salina, Kansas, has decided that his firm must acquire a new machine that costs $800,000. The firm's corporate borrowing rate is 12%. The machine can be leased for $110,000 per yea r for its 10-year life. If the firm leases, it gets no salvage valuc. If it owns, the expected salvage value is $50,000. Maintenance costs will be the same whether Surf Side leases or buys. The firm would use straight-line depreciation to a net book value of $50,000, its cax rate is 40%, and the cost of capital for the machine is i496. Calculate the net advantage to leasing