Big Siky Mining Company must install $1.5 milion of new machinery in its Nevads mine. It can obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: 1. The machinery falls into the MACRS 3-year class. (The depreciation rates for Year 1 through Year 4 are equal to 0.3333,0.4445,0.1481, and 0.0741. ) 2. Under either the lease or the purchase, Big Sky must poy for insurance, property taxes, and maintenance. 3. The firm's tax rate is 25%. 4. The loan would have an interest rate of 16%. It would be nonamortizing, with only interest paid at the end of each year for four years and the principal repaid at Year 4. 5. The lease terms call for $400,000 payments at the end of each of the next 4 years. 6. Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of $200,000 at the end of the 4th year. a. What is the cost of owning? Enter vour answer as a positive value. Do not round intermediate caiculations. Write out your answer campletely. For example, 5 milion shoul be entered as 5.000,000, Round your answer to the nearest doliar. 5 b. What is the cost of leasing? Enter your answer as a pasitive value. Do not round imtermedate calculations. Write out your answer completely, For example, 5 mallion shoul be ontared as 5.000,000, Round your answer to the nearest dollar. 5 c. What is the NAL of the lease? Do not round intermediste calculations. Write out your answer completely. For example, 5 million should be entered as 5,000,000, Round ynar answer to the nearest dollar. 5