A warehouse can be purchased for $90 000. After 20 years the property will have a residual

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A warehouse can be purchased for $90 000. After 20 years the property will have a residual value of $30 000. Alternatively, the warehouse can be leased for 20 years at an annual rent of $10 000 payable in advance. If money is worth 8%, should the warehouse be purchased or leased?
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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