Problem $21-11$ Deposits in Leasing

The Wildcat Oil Company is trying to decide whether to lease or buy a new computerassisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $$3\mathrm{.}2$ million in annual pretax cost savings. The system costs $$8\mathrm{.}3$ million and will be depreciated straight$-$line to zero over its five$-$year life, after which it will be worthless. Wildcat's tax rate is $22$ percent and the firm can borrow at $8$ percent. Lambert Leasing Company has offered to lease the drilling equipment to Wildcat for payments of $$1,810,000$ per year. Lambert's policy is to require its lessees to make payments at the start of the year. Suppose Lambert requires Wildcat to pay a $$850,000$ security deposit at the inception of the lease. Calculate the NAL with the security deposit. $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

$\backslash$table$[[$NA$,\backslash$table$[[$$$,61580000]]]]$