QUESTION $14$

Your firm is purchasing a new computer server that will last for five years. The firm can purchase the system for an

upfront cost of $$400,000.$ Alternatively, you can lease the server from the manufacturer for $$8,000$ paid at the end of

each month. The lease price is offered for a $60-$month lease with no early termination$-$you cannot end the lease early.

Your firm can borrow at an interest rate of $6\%$ per year with monthly compounding.

For what monthly lease value is the firm indifferent between buying and leasing the server?

A$.$ $$7733\mathrm{.}11$

B$.$ $$5644\mathrm{.}81$

C$.$ $$6654\mathrm{.}65$

D$.$ $$8877\mathrm{.}89$