The Wildcat Oil Company is trying to decide whether to lease or buy a new computer$-$assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $$2\mathrm{.}3$ million in annual pretax cost savings. The system costs $$8\mathrm{.}2$ million and will be depreciated straight$-$line to zero over five years. Wildcat's tax rate is $24$ percent, and the firm can borrow at $6$ percent. Lambert Leasing Company is willing to lease the equipment to Wildcat. Lambert's policy is to require its lessees to make payments at the start of the year. Suppose it is estimated that the equipment will have an aftertax residual value of $$725,000$ at the end of the lease. What is the maximum lease payment acceptable to Wildcat? $($Do not round intermediate calculations and enter yuor answer in dollars, not millions, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$You work for a nuclear research laboratory that is contemplating leasing a diagnostic

scanner $($leasing is a very common practice with expensive, high$-$tech equipment$).$ The

scanner costs $$5,000,000.$ Because of radiation contamination, it actually will be

completely valueless in four years. You can lease it for $$1,490,000$ per year for four

years. Assume that the tax rate is $22$ percent. You can borrow at $8$ percent before taxes.

Assume that the scanner will be depreciated as three$-$year property under MACRS. Use

Table $10\mathrm{.}7.$

a$.$ What is the NAL of the lease? $($A negative answer should be indicated by a minus

sign. Do not round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Should you lease or buy?

Answer is complete but not entirely correct.