Cost of Leasing Bird Wing Bedding can lease an asset for 4 years with payments of $21,000 due at the beginning of the year. The firm can borrow at a 9% rate and pays a 25% federal-plus-state tax rate. The lease qualifies as a tax-oriented lease. What is the cost of leasing? Do not round intermediate calculations. Round your answer to the nearest dollar. Finance Lease: Net Advantage to Leasing Dunbar Corporation can purchase an asset for $27,000; the asset will be worthless after 14 years. Alternatively, it could lease the asset for 14 years with an annual lease payment of $2,975 paid at the end of each year. The firm's cost of debt is 8%. The IRS classifies the lease as a non-tax-oriented lease. What is the net advantage to leasing? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. $