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$10,000 at the end of its useful life. Lollie has presented Kiddy with the following options (EV of $1, PV of $1. FVA of

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$10,000 at the end of its useful life. Lollie has presented Kiddy with the following options (EV of $1, PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Buy machine. The machine could be purchased for $160,000 in cash. All insurance costs, which approximate $5,000 per year, would be paid by Kiddy.. 2. Lease machine. The machine could be leased for a 10-year period for an annual lease payment of $25,000 with the first payment due immediately. All insurance costs will be paid for by the Lollie Corp. and the machine will revert back to Lollie at the end of the 10-year period. Required: Assuming that a 12% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, determine which option Kiddy should choose. Ignore income tax considerations. (Negative amounts should be indicated by a minus sign. Round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. Return to question PV Buy option $ 185,031 Lease option $ 158,206 Kiddy should Lease choose

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