Your firm is considering leasing a new robotic milling control system. The lease lasts for 5 years. The lease calls for 6 payments of $300,000 per year with the first payment occurring at lease inception. The equipment would cost $1,050,000 to buy and would be straight-line depreciated to a zero book value over its 5-year life. The salvage value will be zero as well. The firm can borrow at 8%, its WACC is 12%, and the corporate tax rate is 34%.

What is the NPV of the lease (Net Advantage of Leasing)?

A.$-305,388

B.$-223,636

C.$-290,072

D.$-156,128

E.$-391,699