You work in the Finance Department of Fly By Night Airlines headquartered in the United States. Your firm is planning to acquire a new model of aircraft. You have been asked to conduct an analysis of whether to lease or buy these planes. This model costs $$80,000,000$ and would be depreciated under the seven$-$year MACRS schedule $($see Handout #$11).$ You feel that these aircraft will have a useful operating life of eight years $($with no salvage value at the end$).$ You can borrow at $6\mathrm{.}60\%$ and you pay taxes at the $21\%$ tax rate under the TCJA.

You have contacted a leasing company located in Germany. They quote you an annual lease payment of $$13,000,000$ for eight years to rent this aircraft.

Based on these parameters, what is the Net Advantage to Leasing $($NAL$)$ for the aircraft?

Group of answer choices

$$141,373$

$-$$$512,906$

$$4,269,666$

$$737,146$