Baskin Corporation is considering acquiring an asset through either lease or purchase for its investment project. The lease has a term of 8 years with annual payments of $41,500. The asset would cost $274,000 to buy and would be depreciated straight-line to a zero salvage value over 8 years. The actual salvage value is zero. If the company has a tax rate of 25 percent, what is the incremental cash flow in Year 8 of leasing rather than purchasing?

		-$31,266.50
		-$35,742.50
		-$39,687.50
		$37,410.50
		$32,550.50