Delgados is considering leasing industrial kitchen equipment. The lease terms include five annual payments of $2,300 with the first payment occurring when the lease is signed. The equipment would cost $11,500 to buy and would be depreciated straight-line to a zero salvage value over 5 years. The actual salvage value is negligible. The firm can borrow at a rate of 6 percent and has a tax rate of 21 percent. What is the cash flow from leasing relative to purchasing in Year 4?

$1,334

$2,300

$2,783

$1,817

$483