High electricity costs have made Farmer Corporation$$s chicken$-$plucking machine economically worthless. Only two machines are available to replace it$.$ The International Plucking Machine $($IPM$)$ model is available only on a lease basis. The lease payments will be $$97,000$ for five years, due at the beginning of each year. This machine will save Farmer $$37,500$ per year through reductions in electricity costs. As an alternative, Farmer can purchase a more energy$-$efficient machine from Basic Machine Corporation $($BMC$)$ for $$450,000.$ This machine will save $$40,500$ per year in electricity costs. A local bank has offered to finance the machine with a $$450,000$ loan. The interest rate on the loan will be $9$ percent on the remaining balance and will require five annual principal payments of $$90,000.$ Farmer has a target debt$-$to$-$asset ratio of $54$ percent and a tax rate of $22$ percent. After five years, both machines will be worthless. The machines will be depreciated on a straight$-$line basis.

a$.$ What is the NAL of leasing? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ How much debt is displaced by this lease?