Big Sky Mining Company must install $$1\mathrm{.}5$ million of new machinery in its Nevada mine. It can obtain a bank loan for $100\%$ of the purchase price, or it can lease the machinery. Assume that the following facts apply:

The machinery falls into the MACRS $3-$year class. $($The depreciation rates for Year $1$ through Year $4$ are equal to $0\mathrm{.}3333,0\mathrm{.}4445,0\mathrm{.}1481,$ and $0\mathrm{.}0741.)$

Under either the lease or the purchase, Big Sky must pay for insurance, property taxes, and maintenance.

The firm's tax rate is $25\%.$

The loan would have an interest rate of $15\%.$ It would be nonamortizing, with only interest paid at the end of each year for four years and the principal repaid at Year $4.$

The lease terms call for $$400,000$ payments at the end of each of the next $4$ years.

Big Sky Mining has no use for the machine beyond the expiration of the lease, and the machine has an estimated residual value of $$250,000$ at the end of the $4$th year.

What is the cost of owning? Enter your answer as a positive value. Do not round intermediate calculations. Write out your answer completely. For example, $5$ million should be entered as $5,000,000.$ Round your answer to the nearest dollar.

$

What is the cost of leasing? Enter your answer as a positive value. Do not round intermediate calculations. Write out your answer completely. For example, $5$ million should be entered as $5,000,000.$ Round your answer to the nearest dollar.

$

What is the NAL of the lease? Do not round intermediate calculations. Write out your answer completely. For example, $5$ million should be entered as $5,000,000.$ Round your answer to the nearest dollar.

$