XYZ Co. wants to get a special instrument to control a critical step in their production line. The instrument has an acquisition cost of $25,000 and will lead to a savings of $10,000 per year for 5 years. They want to evaluate different methods of financing the acquisition. Assume that if they buy it they will use MACRS depreciation for 3-year property. Their effective income tax rate is 44%, and their after-tax MARR is 16%. The rest of the corporation is profitable.

What's the present worth of the after-tax cash-flow stream if they lease it for the 5 years with annual payments of $5000? The lease payments will be due at the beginning of the year.