Jagma Jet has made the decision to operate a new jet, to carry back travelers from Chile. The jet has a purchase price of $18 million which Jagma could finance with a 7.5% loan from GE Capital. Alternatively, it can lease the jet from Acme Aircraft Leasing for a five year term with annual lease payments of $5.20 million. Jagma estimates that the aircraft will have a resale value of $9 million at the end of the lease term. Annual operating costs for the plane are estimated to be $1.52 million including fuel, maintenance and pilot salaries. Acme has agreed to cover annual maintenance costs that equal to 15.0% of the plane's purchase price. The loan at GE capital will require regular interest only payments (7.5% interest rate on $18 million) with a balloon payment of the loan at the end of five years. Aircrafts have a CCA rate of 20%. Jagma's tax rate is 30% and its cost of capital is 12% while GE Capital's tax rate is 25% and its cost of capital is 9%. What should Jagma do?