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A Company is considering the acquisition of heavy mining equipment to assist in the development of a new mineral lease. The equipment is expected to
A Company is considering the acquisition of heavy mining equipment to assist in the development of a new mineral lease. The equipment is expected to last for 10 years. You can buy the equipment for $300,000 now or you can lease it for $4,000 payable every month. The company is able to borrow at a rate of 12% with quarterly compounding. Should you purchase the vehicle outright or lease it?
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