This lease calls for 5 payments of $10,200 per year with the first payment occurring immediately. The equipment would cost $44,000 to buy and would be straight-line depreciated to a zero salvage value over 5 years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 6%. The corporate tax rate is 34%.What is the NPV of the lease relative to the purchase if the asset had a residual value of $800?

a. $805.73 b. -$1,137.80 c. -$1,411.48 d. -$961.15 e. $1,218.34