Betch Company 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 $24,400. The asset would cost $110,000 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?

$17,845.00 -$21,737.50 -$23,419.50 $24,212.50 -$25,353.00