A firm is considering whether to purchase or lease land-moving equipment.

The data associated with the purchase are as follows

Initial cost = $150,000

Residual value = $12,000

Maintenance cost = $1,800/per year

Operator cost per day = $300/day

If the equipment is rented, the operator cost is incurred, at the rate of $300 per day and $100 for the daily rental of the equipment.

Determine the minimum number of days per year the equipment must be used to justify the purchase. Use an interest rate of 7%.

Life = 10 years