Consider a firm A that wishes to acquire an equipment. The equipment is expected to

reduce costs by $$3200$ per year. The equipment costs $$30000$ and has a useful life of

$10$ years. If the firm buys the equipment, they will depreciate it straight$-$line to zero

over $10$ years and dispose of it for nothing. They can lease it for $10$ years with an

annual lease payment of $$5000.$ If the after$-$tax interest rate on secured debt issued

by company A is $6\%$ and tax rate is $25\%,$ what is the Net Advantage to Leasing

$($NAL$)?($keep two decimal places$)$

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