equipment replacement problem discussed in Section 5.3. In addition to the lease costs described for the problem, suppose that it costs Compu-Train $2,000 extra in labor costs whenever the company replaces their existing computers with new ones. What effect does this have on the formulation and solution of the problem? The optimal plan under both leasing options is to replace the equipment at the beginning of Years 3 and 5 . Which of the two leasing contracts is optimal in this case? Leasing Option 2 is the preferred alternative, with a total cost of $