PonchoParts, Inc. manufactures reproduction parts for classic cars. The firm needs a computer-operated turret lathe that costs $440,000. It can borrow at 9.5%. The lathe will be used for five years, after which it will have a salvage value of $50,000. Enterprising Leasing, Inc. will lease the equipment to the firm for $100,000 per year. The firm's tax rate is 34%. If the lathe belongs in a 30% CCA class, what is the net advantage to leasing (NAL)?

Assume: asset pool continues. The Salvage value is redeemed after the completion of 5 years. Lease payments are made at the beginning of the year.

a. 3563

b. 105

c. -1130

d. -3379

e. 8235