The New Century College needs a fleet of sedans that are available for staff members to run college-related errands. The college has identified a properly-equipped version of the Buick LaCrosse as the appropriate sedan for its needs. It negotiated a purchase price of $36,795 for this model.

However, GM, the car manufacturer is currently offering to lease this very sedan for 5 annual payments of $7,600 with the first payment occurring right now. The Colleges borrowing rate is 6% and the college pays not taxes. GM pays taxes at 21% and can depreciate the car straight-line over 4 years with the first depreciation expense occuring at time t=1.

What is the NAL of the lease for the College? What is the NAL of the lease to GM? Will the College lease this fleet of sedans?