believes it can arrange a lease. Ascume that the following facts apply:

The equipment falls in the MACaS $5-$year class. The applicable MACaS rates are $21\%,34\%,20\%,10\%,9\%,$ and $6\%.$

The lease indudes maintenance, whereas if the equipment is purchased, it would require maintenance provided by a sarvice contract for $$150,000$ per yar, payable at the end of the year

Findley's federal$-$plus$-$state tax rate is $45\%.$

If the money is borrowed, the bank loan will be at a rate of $11\%,$ amortized in $5$ equal linstaliments to be paid at the end of each year:

The tentative lease terms call for end$-$of$-$year payments of $$1\mathrm{.}10$ million per year for $5$ years.

At the end of the lease term, the equipment will have an estimated salvage value of $$500,000.$ Ac that time, Findley plans to replace the equipment regardies of whether be firm leases or purchases it$.$

What is the in advantage to leasing? Do not round intermediate calaulations. Round your answer to the nearest thousand dollars. Enter your answer as a positive fumber

$ thousand