Sina, the owner of Stationary Ltd., has come to you, her financial analyst, for your recommendation. The company needs a new printing machine. The machine can be purchased today for $1,400,000. If the machine is purchased, the company would incur annual maintenance and insurance costs of $35,000, paid at the end of the year. The machine would qualify for the 30% CCA rate and for the Accelerated Investment Incentive allowing 1.5 times the CCA to be claimed in the year of acquisition. The company can borrow funds from the bank at an interest rate of 7%. The machine has a useful life of eight years, with a salvage value of $175,000 at the end of that time. Assume that there will be assets remaining in the class and a positive UCC balance after the proceeds on salvage are deducted. Alternatively, the machine can be leased for eight years. The lease requires annual payments of $230,000, made at the beginning of each year. The lessor will pay for any maintenance and insurance. The companys income tax rate is 23%. What is the net value to leasing (NVL) for this new machine?

a) $11,427

b) $62,646

c) $72,162

d) $76,904

There is no further information.