FINC, Inc. has just finished a capital budgeting analysis of a new piece of equipment, and it has a very attractive NPV. They are now considering whether to buy or lease the machine. The equipment costs $1,650,000, has a life of three years, and will have no salvage value after that life. If the company purchases the machine, it will be depreciated by the straight-line method over three years. They have contacted a rental agency, and they offer annual lease payments of $600,000 for three years (payable at the end of the year). FINCs (before-tax) cost of borrowing is 6%, and the marginal tax rate is 15%. What is the Net Advantage to Leasing (NAL) under these terms? ____________ Should FINC lease the equipment?

A. $66,240: Yes

B. -$1,363,236; No

C. -$39,494; No

D. -$66,240: Yes

E. $39,494; Yes