Sam A. needs new equipment for his business which can be purchased today for $180,000. The same equipment can also be leased (rented) for $4200 per month. If the interest rate is 7% APR compounded monthly which of the following options is best for Sam

A. Assume that with either option the equipment would have a 5 year useful life. Lease, since the present value (PV) of the lease is $12,224 less than the purchase cost.

B) Lease, since the present value (PV) of the lease is $8642 less than the purchase cost.

C) Lease, since the present value (PV) of the lease is $2212 less than the purchase cost.

D) Buy, since the present value (PV) of the lease is $32,108 more than the purchase cost.

E) Buy, since the present value (PV) of the lease is $72,000 more than the purchase cost.