A contractor is considering purchasing a used mobile crane for $$120,000$ that the company could

use for $8$ years then sell for an estimated salvage value of $$37,500.$ Annual maintenance and repair

costs are estimated to be $$8,000$ per year. As an alternative, the contractor could choose to lease

a similar model of mobile crane for $$2,800$ per month, and the maintenance and repair costs are

assumed to be covered in leases. Assuming annual operation cost are approximately the same for

both alternatives, with a minimum attractive rate of return of $8\%,$ please help the contractor

decide which option has a lower annual total cost, should the contractor purchase or least the

crane if the cost is the key factor here for decision$-$making.