Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 9%. The cars will be used for four years. At the end of four years they will be worthless. You call a leasing agent and find that the cars can be leased for $55,000 per year. The corporate tax rate is 34% and the cars belong in CCA class 10 (a 30% class), what is the net advantage to leasing?

a. $6,594

b. $5,399

c. $7,771

d. $15,363

e. $21,802