"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 9.1% APR with monthly compounding. Classify each lease below as a capital lease or operating lease, and explain why:
a). A four-year fair market value lease with payments of $1,155 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 $915 per month
d). A five year fair market value lease with payments of $1,000 per month and an option to cancel after three years with a $9,000 cancellation penalty.