As one aspect of its business, New Lawn Company currently rents a ditch-digging machine for an average

Question:

As one aspect of its business, New Lawn Company currently rents a ditch-digging machine for an average of $35 per job. A used machine is available for $995 but would cost $200 to repair. The machine, if purchased, would cost $700 a year to maintain and in two years would need a new chain costing $350. The used digger has a useful life of four years with no . Required:
If the company averages 35 jobs a year and has a of 10%, which alternative is more profitable?

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