Montclair Manufacturing is considering leasing some equipment. The annual lease payment would be $$975,000$ per year for eight years. The appropriate interest rate is $7$ percent and the company is in the $25$ 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