Misty River Minerals must install $5.6 million of new machinery in its Ontario mine. It can Buy obtain a bank loan for 100% of the purchase price, or it can lease the machinery. Assume that the following facts apply:

(1) The machinery falls into asset Class 38 with a declining balance CCA rate of 30%.

(2) Under either the lease or the purchase, Misty River must pay for insurance, property taxes, and maintenance.

(3) The firm's tax rate is 26%.

(4) The loan would have an interest rate of 10%.

(5) The lease terms call for $1,425,000 payments at the beginning of each of the next 4 years.

(6) Assume that Misty River Minerals has no use for the machine beyond the expiration of the lease. The machine has an estimated residual value of $1,000,000 at the end of the fourth year. 

What is the NAL of the lease?