Carmichael Cleaners needs a new steam finishing machine that costs $$100,000.$ The company

is evaluating whether it should lease or purchase the machine. The equipment falls into the

MACRS $3-$year class, and it would be used for $4$ years and then sold, because the firm plans

to move to a new facility at that time. The estimated value of the equipment after $4$ years is

$$30,000.$ A maintenance contract on the equipment would cost $$5,000$ per year, payable at

the beginning of each year. Alternatively, the firm could lease the equipment for $4$ years for a

lease payment of $$29,000$ per year, payable at the beginning of each year. The lease would

include maintenance. The firm could obtain a $4-$year simple interest loan, interest payable at

the end of the year, to purchase the equipment at a before$-$tax cost of $10\%.$ The firm is in the

$30\%$ tax bracket. If there is a positive Net Advantage to Leasing the firm will lease the

equipment. Otherwise, it will buy it$.$ What is the NAL? $($Note: Assume MACRS rates for

Years $1$ to $4$ are $0\mathrm{.}3333,0\mathrm{.}4445,0\mathrm{.}1481,$ and $0\mathrm{.}0741.)$