A young entrepreneur is considering buying or leasing a Xerox machine for a photocopying business office. The cost of the Xerox machine is $24,000.the annual maintenance cost is $750. The expected annual revenue from photocopying is $5500. If he decides to lease the machine the annual cost is $4000 including maintenance. The Xerox machine becomes obsolete after five years. Calculate the net present value for both scenarios and the profitability index for the buying scenario. What is your advice to the young entrepreneur? Assume that funds have to be borrowed at an interest rate of 15%.