Lease versus Buy MACRS $3-$year class. $($The depreciation rates for Year $1$ through Year $4$ are equal to $0\mathrm{.}3333,0\mathrm{.}4445,0\mathrm{.}1481,$ and $0\mathrm{.}0741.)$ property taxes, and maintenance. purchasing the used equipment at Year $3$ and its depreciation expenses starting at Year $3.$

To assist management in making the proper lease$-$versus$-$buy decision, you are asked to answer the following questions:

a$.$ What is the cost of owning? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest dollar. $

b$.$ What is the cost of leasing? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest dollar. $

c$.$ What is the net advantage of leasing? Do not round intermediate calculations. Round your answer to the nearest dollar.

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Should Sadik take the lease? Explain.

Since the cost of leasing the machinery is $|$ than the cost of owning it$,$ the firm should ${\displaystyle \underset{\phantom{}}{\overset{\phantom{}}{}}}$ the equipment. $