3. Your company is looking for a television production vision mixer forits studio and your job is to shop for one. You can either buy one with a full payment of $450,000, or lease one for 5 years with semi-annual lease payments of $50,000 each. The machine will become obsolete in five years with no resale value. The opportunity cost of your companys capital is 6 percent.

Would you recommend your company to buy or lease the machine? Justify your answer