Quartz Corporation is a relatively new firm. Quartz has experienced enough losses during its early years to provide it with at least eight

years of tax loss carryforwards. Thus, Quartz's effective tax rate is zero. Quartz plans to lease equipment from New Leasing Company.

The term of the lease is five years. The lease payments are made at the end of each year. The purchase cost of the equipment is

$$860,000$ and it would be depreciated straight$-$line to zero over five years. New Leasing Company is in the $40$ percent tax bracket.

There are no transaction costs to the lease. Each firm can borrow at $9$ percent. $($Do not round intermediate calculations. Round the

final answers to $2$ decimal places. Omit $ sign in your response.$)$

a$.$ What is Quartz's reservation price?

Reservation price

b$.$ What is New Leasing Company's reservation price?

Reservation price

$