Jeff & Bezos is a fresh groceries delivery company. The company has access to borrowing funds at a pre$-$tax rate of $8\%$ per year. Jeff & Bezos pays income taxes using $23\%$ tax rate. The company would like to start using high$-$speed low$-$altitude drones to deliver grocery purchases directly to residential customers' backyards. The required fleet of drones costs $$4,700,000.$ If the company chooses to buy them, the drones would be losing their economic value following the straight$-$line depreciation method during a three year period. The fleet of drones, due to their heavy usage, would have no salvage value in three years. Instead of buying the fleet of the drones, Jeff & Bezos is also contemplating leasing them for an estimated pre$-$tax annual cost of $$1,750,000$ for three years from a different company. What should Jeff & Bezos do$?$ Should the company buy or lease the drones?

Calculate the net advantage to leasing, a$.$k$.$a$.$ NAL, for Jeff & Bezos. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ If your answer is negative, don't forget to put the minus sign.$)$

NAL

According to the above calculations, Jeff & Bezos should

the drones.

Buy

Lease