You are asked by the CEO of your company to conduct an analysis to determine if there is a benefit to leasing vs$.$ buying the equipment the company needs to expand production. You are provided with the following information.

$1.$ If the equipment is leased, the company will pay $$300,000$ per year for the next four years. Maintenance of the equipment will be included in the lease agreement.

$2.$ If the equipment is purchased, the company will borrow the funds needed. The equipment will cost $$1\mathrm{.}5$ million. The company is able to borrow the funds needed at a rate of $12\%.$ The equipment will be depreciated fully for four years at the following rates $33\%,45\%,15\%,$ and $7\%.$ The equipment will have a residual value of $$250,000$ by the end of the fourth year. To maintain the equipment, the company will purchase a maintenance contract at a cost of $$25,000$ per year paid at the beginning of each year. The company enjoys a $35\%$ tax rate.

What is the present value of owning?