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A company is considering either (1) purchasing equipment for use on a new project (purchase cost = $5,000; purchase variable cost = $50 per day)

A company is considering either (1) purchasing equipment for use on a new project (purchase cost = $5,000; purchase variable cost = $50 per day) or (2) leasing this equipment from a vendor at a rate of $100 per day.An initial analysis determined that the "purchase" option break-even point is 100 days.Based on this analysis, the company should

  • $300,000

  • $140,000

  • $500,000

  • $180,000

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