P15-4-| | | | | | | | Lease versus Buy Misty River Minerals must install $5.6 million of new machinery in its Ontario 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: 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 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 next4 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