1. 27.1 Lease or buy Your company wants to purchase a new network file server for its wide-area computer network. The server costs $75 000. It will be completely obsolete in three years. Your options are to borrow the money at 10 per cent or to lease the machine. If you lease, the payments will be $27 000 per year, payable at the end of each of the next three years. If you buy the server, you can depreciate it straightline to zero over three years. The tax rate is 30 per cent. Should you lease or buy?