(W Corporation) is deciding between buying or leasing a machine from (YYYCo.) . The machine would cost 18 MM and have a 3 year useful life . After 3 years , the machine will be disposed of at a cost of $ 1,000,000 . Maintenance expenses are projected to be $ 500,000 per year ( payable at the end of the year ) . YYYCo. offers to lease the machine to WCorp. for 7 MM per year , excluding maintenance expenses . This would be a capital lease , with the payments made at the end of the year . WCorp. can borrow at 7 % and has a 20 % tax rate . YYYCo. can borrow at 10 % and has a 25 % tax rate . Should WCorp. buy or lease the machine ?

Please Provide Step-by-Step Calculation. NO EXCEL ALLOWED.