(b) (25 marks) A car rental agency has to acquire five new sedans for its fleet of cars available for rental.due to an increasing demand from customers. Two options are available, one is to purchase the cars outright and the other is to lease them. If the leasing option is taken, an annual charge of $21 500 increasing by 10 percent each year and payable at the beginning of each year, applies for the duration of the lease which is for five years. Maintenance costs are to be born by the lessor but operating costs are the responsibility of the car rental agency and are assessed at $18 000 per annum, occurring at the beginning of each year. If the purchase option is chosen, the cars will initially cost $108 000 and at the end of five years are estimated to be worth $30 000. Maintenance costs are averaged out and are estimated at $1500 at the end of each year for five years. Bank interest is taken as 14 percent over the five years. Which of the two options is the better and by how much, based on present value costs