Buster's Beverages is negotiating a lease on a new piece of equipment that would cost $100,000 if purchased.

Buster’s Beverages is negotiating a lease on a new piece of equipment that would cost $100,000if purchased. The equipment falls into the MACRS 3-year class, and it would be used for 3 yearsand then sold, because the firm plans to move to a new facility at that time. The estimated valueof the equipment after 3 years is $30,000. A maintenance contract on the equipment would cost$3,000 per year, payable at the beginning of each year. Alternatively, the firm could lease theequipment for 3 years for a lease payment of $29,000 per year, payable at the beginning of eachyear. The lease would include maintenance. The firm is in the 20% tax bracket, and it couldobtain a 3-year simple interest loan, interest payable at the end of the year, to purchase theequipment at a before-tax cost of 10%. If there is a positive Net Advantage to Leasing the firmwill lease the equipment. Otherwise, it will buy it. What is the NAL?a. $5,736b. $6,023c. $6,324d. $6,640e. $6,972