Canada Duck sells a variety of winter coats to individual and retail stores. The company expects to retire all its manufacturing equipment in the new year. At that point, Canada Duck is considering three options: Option 1) It rents its manufacturing equipment at an annual cost of $65,000 per year. Maintenance of equipment costs $5,000 per year. The company pays rent and maintenance at the beginning of each year. Option 2) It rents state-of-the-art manufacturing equipment at an annual cost of $88,000 per year. The company will save $16,500 annually on manufacturing costs. Maintenance of equipment costs $4,000 per year. All costs and savings are incurred at year-end. Option 3) It purchases new equipment for $1,200,000. The equipment is expected to have a life span of 15 years with no salvage value at the end. Canada Duck uses the straight-line depreciation method. The equipment will require maintenance of $1,000 per year for the first 10 years and $4,000 per year thereafter. The company will save $30,000 annually on manufacturing costs. Depreciation, maintenance, and manufacturing savings are incurred at year-end. Suppose the discount rate is 2.5%, the companys tax rate is 17%, which is a better option for Canada Duck?

please show or write all the formulas because if not I will not get any marks! thank you very much!!!!