Darshan Engineering, LLC anticipates the need for a high-speed profilometer with digital recording capability for a multi-year

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Darshan Engineering, LLC anticipates the need for a high-speed profilometer with digital recording capability for a multi-year quality control subcontract they believe they will win within the next 6 months.

Although the system costs \($43,000\) there is enough time to order a system and have it installed; management is pondering whether to lease the machine for \($9,000\) per year (in the event they lose the contract after 3 years) or whether to buy it outright.

The company MARR is 12%. Problem data are gathered below.

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