4. Present Value Analysis: Lease or Buy Decisions One of the many uses of PVC and annualized cost is for making a so-called

“lease or buy” decision. Suppose that the purchase price of a heavy-duty printer is $19,000, with an annual maintenance cost of $200. And suppose the same printer can be leased for an annual cost of $2,000, with an annual maintenance cost of $300. Consider a fifteen–year term for estimation and a 10 percent annual discount rate. Would it be more cost-efficient to lease or buy? (Explain explicitly any assumption you make.)