A new robotic welder can be leased for 3 years with annual payments of $225,000 with the first payment occurring at lease inception. The system would cost $850,000 to buy and would be depreciated straightline to a zero salvage value over five years. The actual salvage value is expected to be $65,000 at the end of the five years. The firm can borrow at 8 percent and has a tax rate of 21 percent. What is the Year 0 incremental cash flow from leasing instead of buying?

Group of answer choices

$1,027,750

$695,000

$672,250

$748,500

$684,750