Assume Right Choice Imaging Center (a for-profit business) plans to acquire a new C-arm machine. If...

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Assume Right Choice Imaging Center (a for-profit business) plans to acquire a new C-arm machine. If the equipment is leased: The company can obtain a 6-year lease that includes maintenance, and has a rental payment of $250,000 at the beginning of each year. The lease meets IRS guidelines. If the machine is purchased: However, if the equipment is purchased, it will cost $1,000,000 with a bank loan of rate of 10% and has a 6-year maintenance contract that cost $25,000 at the beginning of each year. Residual value (at T = 5) = $200,000. The marginal tax rate is 40% and the equipment has a 5-year MACRS life. Using the dollar cost approach, find the Net Advantage to Leasing (NAL). Should Right Choice Imaging purchase or lease the equipment. Why? Assume Right Choice Imaging Center (a for-profit business) plans to acquire a new C-arm machine. If the equipment is leased: The company can obtain a 6-year lease that includes maintenance, and has a rental payment of $250,000 at the beginning of each year. The lease meets IRS guidelines. If the machine is purchased: However, if the equipment is purchased, it will cost $1,000,000 with a bank loan of rate of 10% and has a 6-year maintenance contract that cost $25,000 at the beginning of each year. Residual value (at T = 5) = $200,000. The marginal tax rate is 40% and the equipment has a 5-year MACRS life. Using the dollar cost approach, find the Net Advantage to Leasing (NAL). Should Right Choice Imaging purchase or lease the equipment. Why?