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A lathe costs $57,000 and is expected to result in net cash inflows of $21,000 at the end of each year for three years and

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A lathe costs $57,000 and is expected to result in net cash inflows of $21,000 at the end of each year for three years and then have a market value of $11,000 at the end of the third year. The equipment could be leased for $22,000 a year, with the first payment due immediately a. If the organization does not pay income taxes and its MARR is 10%, show whether the organization should lease or purchase the equipment. b. If the lathe is thought to be worth only, say, $17,000 per year to the organization, what is the better economic decision? a. The AW of purchasing the lathe is (Round to the nearest dollar.) The AW of leasing the lathe is $ (Round to the nearest dollar.) What is the better economic decision? Choose the correct answer below. O A. Purchase OB. Do Nothing O C. Lease b. The AW of purchasing the lathe is $ (Round to the nearest dollar.) The AW of leasing the lathe is $ Round to the nearest dollar.) What is the better economic decision? Choose the correct answer below. O A. Purchase OB. Do Nothing O C. Lease

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