A firm is considering whether to buy specialized equipment that would cost $200,000 and have annual costs of $15,000. After 5 years of operation, the equipment would have no salvage value. The same...

A firm is considering whether to buy specialized equipment that would cost $200,000 and have annual costs of $15,000. After 5 years of operation, the equipment would have no salvage value. The same equipment can be leased for $50,000 per year (annual costs included in the lease), payable at the beginning of each year. If the firm uses an interest rate of 5% per year, the annual cost advantage of leasing over purchasing is nearest what value?           (a) $2494                                                                                                           (b) $8694
                     (c) $11,200
                     (d) $12,758