eBook Finance Lease: Net Advantage to Leasing Dunbar Corporation can purchase an asset for $25,000; the asset will be worthless after 12 years. Alternatively, it could lease the asset for 12 years with an annual tease payment of $2,848 paid at the end of each year. The firm's cost of debt is 7%. 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. $