1. A company is considering leasing a new equipment. The lease lasts for 5 years. The lease calls for 5 payments of $58,000 per year with the first payment occurring immediately. The equipment would cost $250,000 to buy and would be straight-line depreciated to a zero salvage value over 5 years. The firm can borrow at a rate of 6%. The corporate tax rate is 33 percent. What is the NPV of the lease relative to the purchase if the asset had a pretax salvage value of $41,000 (ignoring any possible risk differences)?

   		-$24,565.86
   		-$24,984.48
   		-$25,403.10
   		-$25,821.72
   		-$26,240.34