Walton Nursing Home $($WHN$)$ is evaluating a guideline lease agreement on laundry equipment that costs $$250,000$ and falls into the MACRS three$-$year class. The home can borrow at an $8\%$ rate on a four$-$year loan if WHN decided to borrow and buy rather than lease. The laundry equipment has a four$-$year economic life, and its estimated residual value is $$50,000$ at the end of year $4.$ If WHN buys the equipment, it would purchase a maintenance contract which costs $$5,000$ per year, payable at the beginning of each year. The lease terms, which include maintenance, call for a $$71,000$ lease payment at the beginning of each year. WHN$\text{'}$s tax rate is $40\%.$

Modified Accelerated Cost Recovery System $($MARCS$)$ for year $1=33\%$; Year $2=45\%$; Year $3=15\%$; Year $=7\%$

a$.$ Calculate the after tax cost of debt.