Delamont Transport Company $($DTC$)$ is evaluating the merits of leasing versus purchasing a truck with a $4-$year life that costs $$40,000$ and falls into the MACRS $3-$year class. If the firm borrows and buys the truck, the loan rate would be $10\%,$ and the loan would be amortized over the truck's $4-$year life, so the interest expense for taxes would decline over time. The loan payments would be made at the end of each year. The truck will be used for $4$ years, at the end of which time it will be sold at an estimated residual value of $$10,000.$ If DTC buys the truck, it would purchase a maintenance contract that costs $$1,000$ per year, payable at the end of each year. The lease terms, which include maintenance, call for a $$10,000$ lease payment $(4$ payments total$)$ at the beginning of each year. DTC$\text{'}$s tax rate is $40\%.$ What is the net advantage to leasing? $($Note: Assume MACRS rates for Years $1$ to $4$ are $0\mathrm{.}3333,0\mathrm{.}4445,0\mathrm{.}15,$ and $0\mathrm{.}07.)$

$$ $$849$

$$ $$896$

$$ $$945$

$$ $$999$

$$ $$1,047$