The L Company is considering a new office computer system. They can purchase the system for $21,000. If the computer system is purchased, it will be depreciated straight line over a five year life to a zero salvage value. However, they estimate that it could be sold for $5,000 at that time. Alternatively, L Company could lease the computer system for six payments of $2,000, with the first payment due immediately. L Company's before tax cost of debt is 11% and its marginal tax rate is 34%. The cost of leasing minus the cost of purchasing is:
a. $926
b. -$166
c. $1,249
d. -$132