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8. A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it

8. A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. (Remember that lease payments occur at the start of the year.) The firm wants to earn at least 12% (MARR) on all investments. What is the interest rate for buying versus leasing? On the basis of internal rate of return analysis, which is the better choice

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