A firm is considering the purchase of a new equipment costing $5,229,840 which qualifies for a 27% CCA rate. This equipment has a 4-year life after which it can be sold for $758,050. The firm can lease it for $1,185,730 per year for its useful life. Assume that the firm makes payments at the end of the year, the asset pool remains open, the tax rate is 40%, and the pre-tax cost of borrowing is 6.58%. What is the absolute value of the net advantage to leasing? Question 14 options:

$125,141 $128,617 $132,093 $135,569 $139,045