After deciding to acquire new equipment, you must decide between leasing or purchasing. The equipment you wish to acquire costs $45,000. If you lease, you will pay $ 741.71 per month starting today; 60 payments in total. If you purchase, you will make a 10% downpayment today and will pay off the balance in monthly payments. The first of 59 monthly payments will begin 1 month from today. Five years from now, you believe you will be able to sell this equipment for $10,000. The applicable effective annual rate is 6%. Required: Ignoring tax considerations, should you

(a) lease or purchase the equipment?

(b) What break-even resale price in five years would make you indifferent between leasing or purchasing?