2. Taco Shell Inc. is a restaurant with operating lease commitments of $30 million a year for the next 8 years. It has a cost of capital of 8%, a cost of equity of 10%, a pre-tax cost of debt of 4% and an after-tax cost of debt of 2.5%. Which of the following is the debt value of operating leases?

a. $ 160.05 million

b. $ 172.40 million

c. $ 201.98 million

d. $ 215.10 million

e. $ 240.00 million