An investment bank has sought your advise on their plan to install Bloomberg Terminals in their new offices. They have the below three option

$$ They can lease the Terminals for $10,000$ growing at $3\%$ a year for $5$ years. The lease expenses would be treated as operating and therefore would be tax$-$deductible.

$$ They can buy the Terminals for $40,000$ and depreciate it over $4$ years, which is the expected project life.

$$ The third option is to buy the Terminals for $40,000$ and expense it immediately. The Terminals will still have an expected life of $4$ years.

If the main rate of corporation tax is $25\%$ and the cost of capital is $10\%,$ estimate the equivalent annual cost of each option.