A corp is replacing some old equipment and are trying to decide whether or not to buy or lease the new equipment. The equipment would be used over 5 years. Relevant information is as follows: lease option. the corp would enter a 5 year lease agreement with annual lease payments of 200000 per year. the lease would require a refundable deposit of 50,000. a significant advantage associated with the lease is that all operating repair and maintenance costs are covered by the lessor. purchase option: they would purchase the equipment by making an initial investment of 850,000. The equipment would be used for 5 years at which it could be sold for an estimated 425,000. Annual operating costs associated with the equipment would be 9000. Estimated maintenance and repair costs would escalate over the 5 years. It is estimated that such costs would be 3000 per year for the first 3 years before increasing to 5000 in year 4 and 10000 in year 5. corp has a cost of capital of 18%