Check my work 14 0.5 points The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $3.5 million in annual pretax cost savings. The system costs $8.6 million and will be depreciated straight-line to zero over its five-year life, after which it will be worthless, Wildcat's tax rate is 25 percent and the firm can borrow at 7 percent. Lambert Leasing Company has offered to lease the drilling equipment to Wildcat for payments of $1,860,000 per year. Lambert's policy is to require its lessees to make payments at the start of the year. Suppose Lambert requires Wildcat to pay a $880,000 security deposit at the inception of the lease. 3old D Calculate the NAL with the security deposit. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Hint NAL Print References Check my work 14 0.5 points The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $3.5 million in annual pretax cost savings. The system costs $8.6 million and will be depreciated straight-line to zero over its five-year life, after which it will be worthless, Wildcat's tax rate is 25 percent and the firm can borrow at 7 percent. Lambert Leasing Company has offered to lease the drilling equipment to Wildcat for payments of $1,860,000 per year. Lambert's policy is to require its lessees to make payments at the start of the year. Suppose Lambert requires Wildcat to pay a $880,000 security deposit at the inception of the lease. 3old D Calculate the NAL with the security deposit. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Hint NAL Print References