Oatly Inc. is considering leasing a machine. Expected life is 4 years and residual value is $15,000. Annual lease payments are $16,500 payable in advance. The companys tax rate is 35%, and before-tax cost of borrowing is 12%. What is the annual lease payment tax shield?

Group of answer choices

(a) $14,520

(b) $5,775

(c) $5,250

(d) $1,980

(e) Need more information