1. Alexs father runs a small factory that needs a vacuum oven for brazing small fittings. He can purchase the model he needs for $200,000 up front, or she can lease it for five years for $5,500 per month. She can borrow at 6% APR, compounded monthly. Assuming that the oven will be used for five years, should she purchase the oven or should she lease it?

2. A web server costing $60,000 is paid off in 60 monthly installments at 7% APR. After three years the company wishes to sell the photocopier. What is the minimum price for which they can sell the copier so that they can cover the cost of the balance remaining on the loan?