We fly workers from Calgary to the Diamonds Are For Eva diamond mine near Yellowknife, and we have a choice between buying a plane for $$120$ million, or leasing a plane for $$15$ million$/$year$.$ The PVCCATS is $$20$ million. If we buy the plane, we pay $$5$ million in annual maintenance costs for $30$ years. If we lease the plane, all maintenance is included. Assume no taxes, and no net impact on revenues or working capital.

Using a $7\%$ discount rate, which is the better alternative?

a$)$ Owning and operating the plane has an equivalent annual cost that is $$2$