Badonsky Manufacturing needs to obtain a gear - cutting machine, which can be purchased for $ 7
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Badonsky Manufacturing needs to obtain a gearcutting machine, which can be purchased for $ Badonsky estimates that repair, maintenance, insurance, and property tax expenses will be $ for the machines fiveyear life. At the end of the machines life, it will have no salvage value. As an alternative, Badonsky can lease the machine for $ per year for five years. If the machine is leased, Badonsky must pay only for routine maintenance, estimated to be $ over the machines life. The lessor will pay all other costs. Please calculate the total cost difference leasepurchase based on the above information and answer whether the company should make or buy the machine.
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