A firm needs to obtain a specialized machine, which would cost $4800 to buy. It would be depreciated at the rate of $480 per year for both accounting and tax purposes, and it could be sold in five years for $840. The firm has the option of leasing the machine for five years. This would be an operating lease, with payments of $960 per year at the beginning of each year. The company is subject to a tax rate of 35% and its pre-tax borrowing cost is 8%. What is the total discounted net after-tax cash flow associated with this proposed lease?

-$31

$1553

$1381

$598