Audi Co. is trying to decide whether to lease or buy some new equipment for polishing vehicles. The equipment costs $22,000, has a 3-year life, and will be worthless after the 3 years. The aftertax discount rate is 6.2 percent. The annual depreciation tax shield is $1,760 and the after-tax annual lease payment (i.e., including the lease payment tax-shield) is $6,800. What is the value of the lease? Should the firm purchase the asset via debt-financing or sign a long-term financial lease agreement?

A. -$796.58 B. -$397.11 C. $184.92 D. $315.40 E. $462.84