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3) 1 points XYZ is considering selling excess equipment originally costing $4,000,000 dollars with a book value of $120,000 for $90,000 requiring a 4% sales

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3) 1 points XYZ is considering selling excess equipment originally costing $4,000,000 dollars with a book value of $120,000 for $90,000 requiring a 4% sales commission to the broker. Alternatively they can lease the machine for 5 years at $18,000 annually, but would have to pay $250 in insurance costs each year. At the end of the five years the machine will be worthless. Should they sell or lease the equipment. By how much will they be better off? Assume interest rates are ZERO

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