10.Your company is giving a building on lease for 7 payments of Rs 120,000 per year along with the first payment taking at inception. The building will cost Rs 1000,000 to buy it. The building will depreciate in 8 years with zero salvage value. While the borrowing interest rate is 6%. The lease is _________________. Single choice.

operating lease because there is no amortization.

operating lease because the asset will be obsolete.

financial lease because a huge amount of installment will be received each year.

financial lease because the lease life is greater than 75% of the economic life