Your firm is considering leasing a $50,000 copier. The copier has an estimated economic life of eight years. Suppose the appropriate discount rate is 9.3% APR with monthly compounding. Classify each lease below as a capital lease or operating lease, and explain why:

a. A four-year fair market value lease with payments of $1150 per month

b. A six-year fair market value lease with payments of $790 per month

c. A five-year fair market value lease with payments of $925 per month

d. A five-year fair market value lease with payments of $995 per month and an option to cancel after three years with a $9300 cancellation penalty.