A firm needs new copy machine you can purchase a new one


Question: A firm needs new copy machine. You can purchase a new one for $30000, or you can lease one for three years for a monthly lease payment of $800 (paid at the end of each month). You can borrow money at 5% APR with quarterly compounding. Do you prefer to lease or buy the machine (Explain).

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Finance Basics: A firm needs new copy machine you can purchase a new one
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