Question: Artisan's is considering leasing a new computer. The lease terms include five annual payments of $1,650 with the first payment occurring at the lease signing. The computer would cost $8,500 to buy and would be depreciated straight-line to a zero salvage value over 5 years. The actual salvage value is negligible because of technological obsolescence. The firm can borrow at a rate of 7.5 percent and has a tax rate of 34 percent. What is the cash flow from leasing relative to purchasing in Year 0?