b) A company wants to decide between two leasing options for warehouse for the next 3 years. Option A will require a deposit of $70,000 (refundable after the lease period) and a payment of $60,000 to be paid at the beginning of each month for the next 36 months. Option B has three annual payments of $700,000 each: first today or beginning of year 1, next at the beginning of year 2, and the last payment at the beginning of year 3. Use an interest rate of 10% per year. Find the present value of the total cost of each option and select the better option.