Pioneer, Inc. is considering leasing a new equipment. The lease lasts for 8 years. The lease calls for 8 payments of $97,000 per year with the first payment occurring immediately. The equipment would cost $640,000 to buy and would be straight-line depreciated to a zero salvage value over 8 years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 6.8%. The corporate tax rate is 25%.What is the after-tax cash flow from leasing relative to the after-tax cash flow from purchasing in year 0?

		$567,250
		-$97,000
		-$543,000
		$737,000
		$72,750