A construction company plans to lease a major equipment for use on its new project. It has received quotes from two vendors. Vendor X requires an initial non-refundable deposit of $92,000 plus annual lease payments of $40,000. All the Vendor X costs are in today's dollars. On the other hand, Vendor Y requires an initial non-refundable deposit of $1 12,000 and annual lease costs of $50,000, all in actual dollars. Using a market interest rate of 12% per year and an average inflation rate of 1.82% per year over the next several years, determine the PW of each lease option for an analysis period of 14 years. 1. The PW of the lease costs for Vendor X is 2. The PW of the lease costs for Vendor Y is