Smith could purchase the electronic welder for $500,000. The firm would finance the purchase of the machine with a 16%, 4-year loan requiring end -of-year installment payments of $178,690. It would be depreciated under MACRS using a 5-year recovery period. The firm would pay $5,000 per year for a service contract that covers all maintenance costs. There is no salvage value. Compute the after-tax cost of purchasing