[10 marks] Question 1 A project engineer with EnvironCare is assigned to start up a new office in Vancouver where a 6-year contract has been finalized to collect and analyze ozone-level readings. Two lease options are available, each with a first cost, annual lease cost, and deposit-return estimates shown below. The discount rate is 15% per year. Location A Location IB First cost, $ Annual lease cost, $ per year Deposit return, $ Lease term, years 15,000 3,500 1,000 18,000 -3,100 2,000 EnvironCare has a practice of evaluating all projects over a 5-year period. If the deposit returns are not expected to change, which location should be selected? [3 marks] A. B. Perform the analysis using an 8-year planning horizon. 13 marks] Determine which lease option should be selected on the basis of a present value comparison using the LCM. [4 marks] C