Stoner Equipment Needs $130,000 of New Equipment for a Project

Stoner Equipment needs $130,000 of new equipment for a project. The equipment will be worthless after 4 years. The equipment belongs in a 35 percent CCA class. The equipment can be leased for
$34,500 a year. The firm can borrow money at 8.5 percent and has a 35 percent tax rate. What is
The net advantage to leasing?

A) $6,408
B) $8,834
C) $17,679
D) $51,442
E) $56,545