Question: Saved Help Save & Exit Sub Heidi Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the
Saved Help Save & Exit Sub Heidi Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $138,000 over its estimated life, while the total cost to buy the equipment will be $84,000 over its estimated life. At Held's required rate of return, the net present value of the cost of leasing the equipment is $77,000 and the net present value of the cost of buying the equipment is $71,000. Based on financial factors, Heidi should: Multiple Choice buy the equipment, saving $54,000 over leasing, lease the equipment, saving $6,000 over buying buy the equipment, saving $6,000 over leasing lease the equipment saving $54.000 over buying
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