State Repairs acquires equipment under a noncancelable lease at an annual rental of $45,000, payablein advance for five years. After five years, there is a bargain purchase option of $75,000. The appropri-ate interest rate is 12 percent. What is the total present value of the lease and the first year's interest ex-pense?a.$224,234 and $21,508b.$224,234 and $26,908c.$204,771 and $21,508d.$204,771 and $19,173