A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the other hand, leasing required an annual lease payment of $3000, which occurs at the start of each year. The MARR is 15%. On the basis of an internal rate of return analysis, which alternative should the contractor be advised to accept?
Please explain, and don't just use excel functions.