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(8 marks) Your company is looking for a 40-channel recording and mixing con- sole. You can either buy one at an upfront cost of $158,400,

  1. (8 marks) Your company is looking for a 40-channel recording and mixing con- sole. You can either buy one at an upfront cost of $158,400, or lease one for 5 year at $3,544 a month. The machine is expected to obsolete in 5 years with no resale value. Should you buy one or lease one if the companys opportunity cost of capital is 12%? Explain your answer.

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