Wolfson Corporation has decided to purchase a new machine that costs $$2\mathrm{.}1$ million. The

machine will be depreciated on a straight$-$line basis and will be worthless after four

years. The corporate tax rate is $24$ percent. The Sur Bank has offered Wolfson a four$-$

year loan for $$2\mathrm{.}1$ million. The repayment schedule is four yearly principal repayments of

$$525,000$ and an interest charge of $9$ percent on the outstanding balance of the loan at

the beginning of each year. Both principal repayments and interest are due at the end of

each year. Cal Leasing Corporation offers to lease the same machine to Wolfson. Lease

payments of $$640,000$ per year are due at the beginning of each of the four years of the

lease.

a$.$ What is the NAL of leasing for Wolfson? $($A negative answer should be indicated by a

minus sign. Do not round intermediate calculations and enter your answer in

dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

b$.$ What is the annual lease payment that will make Wolfson indifferent to whether it

leases the machine or purchases it$?($Do not round intermediate calculations and

enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places,

e$.$g$.,1,234,567\mathrm{.}89.)$