Bob's Pizza is considering either leasing or buying a new oven. The lease payments would be $14,000 a years. The purchase price is $41,000. The equipment has a 3-year life and then is expected to have a resale value of $7,000. Bob's Pizza uses straight-line depreciation, borrows money at 9 percent and has a 34 percent tax rate. What is the net advantage to leasing?

$-46

$3,421

$6,845

$608

$3,940