Your firm is considering leasing a $60,000 copier. The copier has an estimated economic life of 9 years. Suppose the appropriate discount rate is 8% APR with monthly compounding.

Classify each lease below as a capital lease or operating lease, and explain why (provide justification):

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

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

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

D. A five-year fair market value lease with payments of $1000 per month and an option to cancel after three years with a $9000 cancellation penalty