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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
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?
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