Ocean Ships is evaluating if it should lease a new tug boat and the lease has six annual payments of $119,000 paid in advance. The new tug costs $613,000 and will last six years. The lease has a residual value of $71,000. The tax department will allow the Tug to be depreciated over 10 years. Ocean Ships expect the salvage value of the Tug at the end of year 6 is $81,000. The corporate tax rate is 30%. In a lease verse buy evaluation what would be the net amount of the buy cash flow at the end of the 6^th year?

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