Montclair Manufacturing is considering leasing some equipment. The annual lease

payment would be $$625,000$ per year for eight years. The appropriate interest rate is $7$

percent and the company is in the $23$ percent tax bracket. What reduction in debt

capacity would occur if the company signs the lease? $($Do not round intermediate

calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Reduction in debt capacity