There is a choice to buy a car worth $28,000 with 100% financing at 4.99% APR for 60 month or lease at $450 per month. The car will need maintenance in the 3rd year worth $525 and $825 in the 4th year. The car will have 35% residual value in the 5th year. Sales tax on new car is 6% and required rate of return is 5%. Which option is better?

a. Buying, since IRR is 9.29%

b. Leasing since IRR is 9.29%

c. Leasing since IRR is 3.65%

d. Buying since IRR is 3.65%