Packaging equipment for Xi Cling Wrap is expected to result in end-of-year net savings of \($23\),000 per year for 3 years. The equipment can be purchased for \($60\),000 and will have a market value of \($10\),000 after 3 years.

Alternatively, the equipment can be leased for \($21\),000 per year, payable at the beginning of each year. Xi Cling’s MARR is 10 percent/year. Based on a present worth analysis, determine if the packaging equipment should be purchased or leased.