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 $15 milion in annual pretax cost savings. The system costs $77 million and will be depreciated straight-line to zero over five years. Wildcat's tax rate is 37 percent, and the firm can borrow at 7 percent Lambert Leasing Company has offered to lease the drilling equipment to Wildcat for payments of $1,650.000 million per year. Lambert's policy is to require its lessees to make payments at the start of the year. 25 Many lessors require a security deposit in the form of a cash payment or other pledged collateral. Suppose Lambert requires Wildcat to pay a $200,000 security deposit at the inception of the lease. What is the NAL with the security deposit? Multiple Choice 5358.04479 O 5376.889 25 $578.640.06 $39573371