19. Heidi Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $124,000 over its estimated life, while the total cost to buy the equipment will be $79,000 over its estimated life. At Heidi's required rate of return, the net present value of the cost of leasing the equipment is $75,000 and the net present value of the cost of buying the equipment is $69,000. Based on financial factors, Heidi should:

Multiple Choice

buy the equipment, saving $45,000 over leasing.

buy the equipment, saving $6,000 over leasing.

lease the equipment, saving $6,000 over buying.

lease the equipment, saving $45,000 over buying.

20. How much will you have in a savings account in ten years, if you deposit $1,100 in the account at the end of each year and the account earns 10% interest, compounded annually? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)

Multiple Choice

• $11,000
• $12,100
• $17,531
• $22,258