An agricultural accounting firm needs a new copy machine.If it leases the copier on a five-year lease, five rental payments of $900 will be made at the end of the year, including the first.Alternatively, the firm could purchase the copier.If purchased, an initial investment of $500 would be required.Amortized loan payments of $500 would then be made at the end of years 1-5.The copier would have no salvage value at the end of five years.$2200 in cash inflow each year would be attributed to the copier.The cost of capital is 9%.Would it be better for the accounting firm to purchase or lease the copier?Why?

a. Buy because NPV_buyof$6112is greater thanNPV_leaseof $5057

b. Lease because NPV_leaseof$6112is greater thanNPV_buyof $5057

c. The accounting firm is indifferent sinceNPV_buy=NPV_lease

d. There is not enough information to answer this question