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 25 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)?

-$27,851.59

-$28,270.21

-$28,688.83

-$29,107.45

-$29,526.07