Stone Wall Builders Is Weighing a Lease Versus a Purchase

Stone Wall Builders is weighing a lease versus a purchase of some new machinery. The purchase price is $268,000. The equipment has a 4-year life and then is expected to have a resale value of
$99,000. Stone Wall Builders uses straight-line depreciation and can borrow money at 7.5 percent.
The equipment can be leased for $56,500 a year for 4 years. Stone Wall Builders does not expect
To owe any taxes for the next 6 years because of accumulated net operating losses. What is the net
Advantage to leasing?

A) $4,632
B) $4,819
C) $4,924
D) $5,207
E) $5,697