Question: please help Devon Corp. is trying to decide whether to lease or purchase a piece of equipment. The total cost lease the equipment will be
Devon Corp. is trying to decide whether to lease or purchase a piece of equipment. The total cost lease the equipment will be $158.000 over its estimated life, while the total cost to buy the equipment will be $123,200 over its estimated Ilfe. At Devon's required rate of return, the net present value of the cost of leasing the equipment is $111,200 and the net present value of the cost of buying the equipment is $127,000. Based on financial factors, Devon should Multiple Choice Jease the equipment, saving $34,800 over buying buy the equipment, saving $34,800 over leasing. lease the equipment, saving $15,800 over buying buy the equipment, saving $15,800 over leasing
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