Question: 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

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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