Corp P is making a decision whether to buy or lease a piece of equipment. Using the following information find the present cost of leasing and buying and make a recommendation.

Equipment cost $=$$$1,200,000,3$ year MACRS life $3$ year economic life Cost of debt $=11\%,$ Maintenance cost per year $$60,000$ paid at beginning of year Tax Rate $=25\%,$ Salvage equipment at end of $3^{rd}$ year for $$80,000$ or Corp P could lease for $$400,000$ per year for three years $-$ paid at beginning of year.