Precision Tool is trying to decide whether to lease or buy some new equipment for its tool and die operations. The equipment costs $53,000, has a 3-year life and will be worthless after the 3 years. The pre-tax cost of borrowed funds is 9 percent and the tax rate is 34 percent. The equipment can be leased for $18,500 a year. What is the net advantage to leasing? (Do not round intermediate calculations.) Multiple Choice $2.987 $4,253 $1,866 $-401 $4,607