Dermine whether it is better to lease or purchase the


Determine whether it is better to lease or purchase the following equipment and what is the difference in cost? Purchase: Borrow $1.5 million at 10% Straight line depreciation over 3 years Trade in value of $150,000 Maintenance cost of $14,000 per year Lease: Lease payments of $55,000 per month 36 months lease term. Includes maintenance. Should the hospital lease or buy? What is the difference in cost? Please show your work.

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Financial Management: Dermine whether it is better to lease or purchase the
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