Bavarian Brew Lease Bavarian Brew Wants to Lease a New Bottling Machine. the Bottling

Bavarian Brew Lease
Bavarian Brew wants to lease a new bottling machine. The company obtains a 10 year lease requiring annual payments of $15,000 at the beginning of the year. The firm is expected to exercise its option to purchase the machine at the termination of the lease for $10,000 at the end of year 10. The company is in the 35% tax bracket.
-What is the annual after tax cash flow for Bavarian Brew from the lease?

A) $15,000
B) $9,750
C) $5,250
D) $12,550