Your firm is considering leasing a $ 51 comma 000

$51,000 copier. The copier has an estimated economic life of eight years. Suppose the appropriate discount rate is 9.1 %

9.1% APR with monthly compounding.

Classify each lease below as a capital lease or operatinglease, and explainwhy:

a. Afour-year fair market value lease with payments of $ 1 comma 145

$1,145 per month.

b. Asix-year fair market value lease with payments of $ 795

$795 per month.

c. Afive-year fair market value lease with payments of $ 915

$915 per month.

d. Afive-year fair market value lease with payments of $ 995

$995 per month and an option to cancel after three years with a$ 8 comma 900

$8,900 cancellation penalty.