A company is considering leasing a new equipment. The lease lasts for 8 years.The lease calls for 8 payments of $208,000 per year with the first payment occurring immediately. The equipment would cost $1,400,000 to buy and would be straight-line depreciated to a zero salvage value over 8 years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 5%. The corporate tax rate is 33%. What is the NPV of the lease relative to the purchase?

$3,285.55 $4,258.72 $5,231.89 $6,205.06 $7,178.23