1: Silver Bullet Train is planning to acquire a new Engine. The current market value of the Engine is $210,000, and the engine can be used for 8 years. They have two options. Option A: They can lease the engine from Sky Motors Inc. who has agreed to lease the engine for 8 years at an annual lease payment of $38,000 (the first payment has to be made at the beginning of the period) Option B: They can get an 8-year, 12% interest loan of $210,000 from Nordic bank. The loan is to be paid-off in eight equal annual instalments (Payments will be made at the end of each year). The useful life of the asset for tax purpose is 6 years. The company follows a straight-line depreciation method. The engine has a residual value of $20,000. If the company pays 40% tax, which option should the company choose?