A lessor can borrow at a rate of 7 percent and has a tax rate of 35 percent. The lessee can borrow at a rate of 8 percent and has a tax rate of 34 percent. Assume an asset costs $138,000 and can be leased in exchange for two annual payments of $70,000 with the first payment due at the time of signing. What is the incremental cash flow at Time 0 for the lessee for a purchase instead of a lease?

-$138,000

$138,000

-$92,500

$92,500

-$91,800