Your firm is considering leasing a $50,000 copier. The copier has an estimated economic life of eight years. Suppose the appropriate discount rate is 9% APR with monthly compounding. Classify each lease below as a capital lease or operating lease:

A four-year fair market value lease with payments of $1150 per month

A six-year fair market value lease with payments of $790 per month

A five-year fair market value lease with payments of $925 per month

Afive-yearfairmarketvalueleasewithpaymentsof$1000permonthandanoption

to cancel after three years with a $9000 cancellation penalty