Taco Shell Inc. is a restaurant with operating lease commitments of $30 million a year for the next 8 years. It has a cost of capital of 8%, a cost of equity of 10%, a pre--tax cost of debt of 4% and an after--tax cost of debt of 2.5%. Which of the following is the debt value of operating leases?
a. $ 160.05 million
b. $ 172.40 million
c. $ 201.98 million
d. $ 215.10 million
e. $ 240.00 million