Question: please solve 183 You are trying to decide whether to buy or lease a new machine. The machine costs $700,000 1) You can buy it,

please solve please solve 183 You are trying to decide whether to buy or

183 You are trying to decide whether to buy or lease a new machine. The machine costs $700,000 1) You can buy it, borrowing money from the bank. If you borrow from the bank, the Interest rate will be 10% You can also 2) lease it for five years, $10,000 down and five annual payments of $179,000. At the end of the 5th year you can buy the equipment for $5,000 3) Lease it for seven years. $20,000 down and seven payments of $133,300 After making the last payment, you may purchase the equipment for $50,000 What should you do

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