P$27-9$ Deposits in Leasing $[$LO$3]$

The Wildcat Oil Company is trying to decide whether to lease or buy a new computerassisted drilling system for its oil exploration business. Management has decided that it must use the system to stay compelitive; it will provide $$1\mathrm{.}4$ million In annual pretax cost savings. The system costs $$6\mathrm{.}8$ million and will be depreciated straight$-$line to zero over four years. Wildcat's tax rate is $31$ percent, and the firm can borrow at $9$ percent. Lambert Leasing Company has offered to lease the driling equipment to Wildcat for payments of $$1,730,000$ million per year. Lambert's policy is to require its lessees to make payments at the start of the year.

Many lessors require a security deposit in the form of a cash payment or other pledged collateral. Suppose Lambert requires Wildcat to pay a $$180,000$ security deposit at the inception of the lease. What is the NAL with the security deposit?