Harrington corporation wants to acquire a $300,000 commercial ice cream production line. Harrington has a 21 percent marginal tax rate. If owned, the production line would be depreciated on a straight-line basis to a book salvage value of $0. The actual cash salvage value is expected to be $30,000 at the end of 6 years. If the line is purchased, Harrington could borrow the needed funds at an annual pretax interest rate of 8 percent. If purchased, Harrington will incur annual maintenance expenses of $15,000. These expenses would not be incurred if the production line is leased. The lease rate would be $60,000 per year, payable at the beginning of each year. Harringtons weighted after-tax cost of capital is 12 percent.

A. Compute the net advantage to leasing

B. What decision should the company make based on NAL?