The Wyoming Wind Power Co$.$ has decided to acquire a

new piece of capital equipment. These units cost

$$73,000,000$ and they are depreciated by the five$-$year

MACRS Schedule. You feel that the machines have an

operating life of six years. You have discussed this matter

with a Leasing Company, and they have offered you a lease

with annual payments of $$14,000,000$ for six years.

Wyoming Wind Power's before tax cost of borrowing is

$5\mathrm{.}70\%,$ and the firm faces a $21\%$ marginal tax rate. What is

the Net Advantage of Leasing $($NAL$)$ of this lease contract?

$+$$$5,634,825$

$-$$$4,141,756$

$+$$$4,006,893$

$-$$$2,513,825$

$+$$$2,378,962$