310 Chapter 22 Purchasing Versus Leirstig Problems 1. The Morton Clinic needs to replace its radiology equipment. The vendot will sell the needed equipment for $100,000 or lease it for five years for $24,000 pet year. Morton is a for-profir organization. that pays 30% tax. The equipment will be placed into service on the first day of the first year, be deprectated $20,000 per year, and have zero salvage value at the end of year 5 . Calculate the cost of purchasing and leasing acing 4.48 present value. Should Morton purchase or lease? 2. The Morton Clinic has recetred a revised leasing offer from their equipment vendor (which wants to grow its leasing business) that lowered the annual lease payment to $23,000. If the purchase price remains $100,000 and all other factors are the same as Problem 22-1, recalculate the cost of purchasing and leasing. Does the lower lease payment change the purchase or lease decision