Clean Energy Generator Company must install $11 million of new machinery in its Nevada 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 depreciates straight line to zero over its economic life. (2) Under either the lease or the purchase, Clean Energy must pay for insurance, property, taxes, and maintenance. (3) The firm's tax rate is 36%. (4) The loan would have an interest rate of 9%. It would be non-amortizing, with only interest paid at the end of each year for two years and the principal repaid at Year 2. (5) The lease terms call for $5,900,000 payments at the end of each of the next 2 years. (6) Clean Energy Generator has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of $3,700,000 at the end of the 2th year. What is the NAL of the lease? 1) -$3,837,814 O2) -$12,186,793 3) -$1,705,695 4) -$2,558,543 5) -$18.280.190