A company has decided to replace an existing piece of equipment. The new equipment can either be leased for $20,000 per year (payments due at the beginning of each year) or purchased for $120,000. The expected useful life of the new equipment is seven years and expected salvage value is $10,000. The companys cost of debt is 5%, WACC is 10%, and marginal tax rate is 40%. The equipment has a CCA rate of 30%.

Question: What is the present value of all leasing payments (without tax saving) over seven years if the equipment is leased?

(Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)