Your firm is considering either leasing or buying some new equipment. The lease payments will be $25,600 a year (Assuming payments are made at the beginning of the year). The purchase price is $72,800. The equipment belongs in a 35 percent CCA class and has a 3-year life after which time it is expected to have a resale value of $11,500. Your firm borrows money at 11 percent, and has a 34 percent tax rate. What is the net advantage to leasing?

A. $2076

B. -$2,446

C. $129

D. $4,467

E. -$1,036