Kohers Inc. is considering a leasing arrangement to finance some manufacturing t

Kohers Inc. is considering a leasing arrangement to finance some manufacturing tools that it needs for the next 3 years. The tools will be obsolete and worthless after 3 years. The firm will depreciate the cost of the tools on a straight-line basis over their 3-year life. It can borrow $4800000 the purchase price at 10% and buy the tools or it can make 3 equal end-of-year lease payments of $2100000 each and lease them. The loan obtained from the bank is a 3-year simple interest loan with interest paid at the end of the year. The firms tax rate is 40%. Annual maintenance costs associated with ownership are estimated at $240000 but this cost would be borne by the lessor if it leases. What is the net advantage to leasing (NAL) in thousands?