A contractor is considering whether to buy or lease a new machine for her layout site work.

Buying a new machine will cost $$120,000,$ with a residual value of $$12,000$ after the machine's

useful life of eight years. On the other hand, leasing requires an annual payment of $$30,000,$

which occurs at the start of each year. MARR is $20\%.$ On the basis of an internal rate of return

analysis, which alternative should the contractor be advised to accept?