Smith meats is trying to decide whether to lease or buy some new equipment. The equipment costs

$62$

$,$

$000$

$,$

$$has a

$3$

$$year life, and will be worthless after

$3$

$$years$.$ the pre

$-$

tax cost of borrowed funds is

$9$

$$percent and he tax rate is

$35$

$$percent$.$ the equipment can be leased for

$22$

$,$

$500$

$$a year. what is the net advantage to leasing assuming the firm is allowed to use stright line method to account for depreciation?