You are given the following information:

• TGC needs a 2-year asset that costs $100, and the company must choose between leasing and buying the asset.
• TGC's tax rate is 40%.
• If the asset is purchased, the bank would lend TGC the $100 at a rate of 0.10 on a 2-year, simple interest loan with a balloon principal payment.
• TGC can depreciate the asset over 2 years for tax purposes by the straight-line method if it is purchased.
• The asset's value at the end of 2 years will be $0.
• Alternatively, TGC could lease the asset under a guideline lease for 2 years for a payment of $55 at the end of each year.

What is the NAL?

NOTE: Enter with 2 decimal places with no dollar sign. If answer is $31.468, enter 31.4