Investor Inc. is considering two options for an investment in equipment with a useful life of $5$ years and no salvage value:

a$.$ Purchase equipment in cash today for $$50,000.$

b$.$ Finance the equipment by paying $$12,000$ at the end of each period for the next $5$ years, assuming an interest rate of $8\%.$

Determine the lower cost option and the savings by choosing that option.

Note: Do not use a negative sign with your answers.

Present value of option $($a$)$: $

Present value of option $(b)$:$

Preferred option

cost savings: $