Question: A construction company has several projects that need a specific mechanism to be used for five years in its projects. The company found that the

A construction company has several projects that

A construction company has several projects that need a specific mechanism to be used for five years in its projects. The company found that the options available to it are either to buy the mechanism at a price of $ 50,000 and need maintenance and operating costs of $ 2000 annually, and then sell it at a price of $ 10,000 at the end of the fifth year. Or to rent the mechanism at a price of $8000 per year, to be paid at the beginning of the year, and you need maintenance and operating costs of $3,000 annually. Which of the two options would be the best if you knew that the interest rate approved by the company is 6%

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