N and M Corp. is considering leasing a new machine for $15,000 per year. The lease arrangement calls for a 5-year lease with an option to purchase the machine at the end of the lease for $2,000. The firm is in the 29% tax bracket. What is the present value of the lease outflows, including the purchase option, if lease payments are made at the end of each year and if the after-tax cost of debt is 9%?

The annual after-tax lease payment is ___