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2) A public agency must acquire a compressor with an economic life of 10 years by purchasing or leasing it at the same time. The

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2) A public agency must acquire a compressor with an economic life of 10 years by purchasing or leasing it at the same time. The purchase price of the compressor is 1500.000 TL and 250.000 if purchased TL annual electricity consumption expense, 300,000 TL annual maintenance and repair costs and every two years 600.000 TL large maintenance and repair expenses will be covered. The scrap value of the compressor is 1.500.000 TL. if If the compressor is not purchased and a lease is chosen, including all operating expenses for 10 years 2.500.000 rent will be paid annually. Since the annual nominal interest rate is 22%, the compressor of the public agency Evaluate the way of acquisition according to the ANNUAL EXPENSE method

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