On January 1, 2028, Custom Shirts, Inc. entered into a lease agreement with Casper Leasing to lease three casting machines. The lease calls for 5 equal, annual payments of $25,000 starting on January 1, 2028. Casper requires a 6% return, which Custom is aware of. Title stays with Casper and there is no purchase option. The machines' market value at the inception of the lease is $380,000 and they have an estimated 20-year life. The machines cost Casper $380,000. How should Casper classify this lease?

Group of answer choices

Operating Lease.

Sales Type lease with Profit.

Sales Type lease without Profit.

Short-term lease.