A firm needs to obtain a specialized machine, which would cost $$7600$ to buy. It would be depreciated at the rate of $$760$ per year for

both accounting and tax purposes, and it could be sold in five years for $$1330.$ The firm has the option of leasing the machine for five

years. This would be an operating lease, with payments of $$1520$ per year at the beginning of each year. The company is subject to a tax

rate of $35\%$ and its pre$-$tax borrowing cost is $8\%.$ What is the total discounted net after$-$tax cash flow associated with this proposed

lease?

$$947$

$$2186$

$-$$$49$

$$2459$