Jacob's Industrial Supply Is Trying to Decide Whether to Lease

Jacob's Industrial Supply is trying to decide whether to lease or buy some new equipment costing $60,000. The equipment will be worthless after its 3-year life. The pre-tax cost of borrowed funds is 9 percent, the tax rate is 35 percent, and the equipment belongs in a 30 percent CCA class. The equipment can be leased for $22,000 a year. What is the net advantage to leasing?

A) $2,340
B) $4,807
C) $6,083
D) $14,611
E) $21,670