1. Medarex is considering the lease of an electronic welder costing $210,000 from
   Key Leasing. The period of the lease will be 6 years. The welder will be depreciated under MACRS rules for a
   5-year class asset.
   Medarex's marginal tax rate is 40%.
   Annual beginning-of-the-year lease payments will be $50,000.

   Estimated salvage value is zero.

   Assuming Medarex's after-tax cost of borrowing is 15%, compute

 the net advantage to leasing. (Problem requires MACRS tables.)