Q8) Acme Inc. is deciding between leasing and purchasing machinery that is necessary for its operations. The lease is for 10 years with an annual cost of $100,000. The purchase price is $670,000. The purchased machinery would cost $15,000 per year to maintain and last 18 years. Acme's WACC is 8%. What is the equivalent annual annuity of the purchase option? Which option should Acme choose, lease or purchase?

A) -$133,075.18; Purchase

B) -$52,222.22; Purchase

C) -$133,075.18; Lease

D) -$86,490.40; Purchase

E) -$100,299.97; Lease