sine wave generator

Are you saying that the Arduino (which doesn't need to generate a sine wave; you can prove this by switching your sig-gen to square) just needs to generate 40kHz?
You could do that with a 555 and save yourself money.
Do you need continuous 40kHz (in which case you won't be able to use full power), or do you want bursts of maximum power at a PRR of 10Hz?