To finance some manufacturing tools it needs for the next 3 years, Waldrop Corporation is considering a leasing arrangement. 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 $4, 800,000, the purchase price, at 10% and buy the tools, or it can make 3 equal end-of-year lease payments of $1, 700,000 each and lease them. The loan obtained from the bank is a 3-year simple interest (non-amortized) loan, with interest paid at the end each year and the principal of the loan repaid at the end of Year 3. The firm's tax rate is 40%. What is the net advantage to leasing (NAL)? Would you Lease or Buy?