A contarctor is considering whether to buy or lease a new equipment for their new project. Buying the quipment will cost $70,000 with a slavage value of $15,000 after the machine useful life of 5 years. ON the other hand, the same equipment can be leased for $16,000 per year. Assuming that the MARR is 15% and on the basis of an internal rate of return analysis, which alternative should be selected?

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Internal Rate of Return IRR Analysis for Equipment Purchase vs Lease To determine the best option fo... View the full answer