16. The city of fairbury Im considering whether to buy or lease new high speed photocopier machine. The purchase price is $14,000 with $750 in annual maintenance for its six year useful life. It will be able to sell machine at the end of the sixth year for $1,000. What is the net present cost of purchasing the Photocopy machine if the discount rate is 8% annually compounded.

20. Based on your analysis should Fairbury buy ( respond with 1 ) or if Fairbury should lease ( respond with 2 )