Quantitative Problem $1$: Findley Furniture Company must install $$5\mathrm{.}8$ million of new equipment in one of its plants. It can obtain a bank loan for $100\%$ of the required amount. Alternatively, management believes it can arrange a lease. Assume that the following facts apply:

$1.$ The equipment falls in the MACRS $5-$year class. The applicable MACRS rates are $20\%,32\%,19\%,12\%,11\%,$ and $6\%.$

$2.$ The lease includes maintenance, whereas if the equipment is purchased, it would require maintenance provided by a service contract for $$150,000$ per year, payable at the end of the year.

$3.$ Findley$$s federal$-$plus$-$state tax rate is $35\%.$

$4.$ If the money is borrowed, the bank loan will be at a rate of $9\%,$ amortized in $5$ equal installments to be paid at the end of each year.

$5.$ The tentative lease terms call for end$-$of$-$year payments of $$1\mathrm{.}20$ million per year for $5$ years.

$6.$ At the end of the lease term, the equipment will have an estimated salvage value of $$900,000.$ At that time, Findley plans to replace the equipment regardless of whether the firm leases or purchases it$.$

What is the firm$$s cost of owning the equipment? Enter your answer in thousands. For example, an answer of $$1,234,000$ should be entered as $1,234.$ Do not round intermediate calculations. Round your answer to the nearest thousand dollars. Enter your answer as a positive number.

$ $\_\_\_\_\_\_\_\_$thousand