Maintain the equipment for you as part of the lease

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Reference no: EM131329620

You need a particular piece of equipment for your production process. An? equipment-leasing company has offered to lease the equipment to you for $9800 per year if you sign a guaranteed 5-year-lease (the lease is paid at the end of each? year). The company would also maintain the equipment for you as part of the lease.? Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below? (the equipment has an economic life of 5 years). If your discount rate is 7.4%, what should you do?

Reference no: EM131329620

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